The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
Spritzer Bhd's shares rose to their highest level in more than two months on Friday after the mineral water company reported better-than-expected results for the second quarter of 2024 (2QFY2024). The stock climbed as much as 6.2% to RM2.75, the highest since June 26, with a market capitalization of RM862 million.
Key Takeaways:
Upgraded Forecasts and Recommendations: BIMB Securities upgraded its recommendation on Spritzer to 'buy,' setting a target price of RM2.90. The firm raised its earnings forecasts for FY2024 to FY2026 by 6%-9%, based on expectations of lower input costs and higher margins.
Strong Financial Performance in 2QFY2024: For the second quarter ended June 30, 2024, Spritzer's revenue rose by 18% year-on-year, while net profit jumped by 63%, driven by higher bottled water sales volume and reduced raw material costs. The net profit for the first half of FY2024 reached RM35.3 million, exceeding BIMB Securities' expectations at 65% and the consensus forecast at 64%.
Growth Drivers: The company is expected to benefit from increased tourist arrivals and a surge in sales ahead of the Chinese New Year. Additionally, Spritzer is set to gain from a decline in raw material costs, particularly PET resin, and a stronger ringgit, as its raw materials are priced in US dollars. The company is also diversifying its product portfolio, with a new product line scheduled to launch in October.
Overall, Spritzer's strong second-quarter performance, combined with favorable market conditions and strategic expansion plans, has boosted investor confidence, driving its share price to a two-month high.
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