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Cheaper PET resin confirm help their bottom line since packaging is one of their biggest overheads. This drop in raw material cost should definitely give their margins a nice boost in the upcoming quarterly results
That price hike confirm will boost their margins nicely since demand for bottled water usually stay steady regardless of small increases. This stock look quite solid to hold for the long term if they can keep controlling their production cost well.
According to MBSB Investment Bank Bhd (MBSB Research), the bottled water producer’s recent efforts to strengthen its delivery infrastructure are expected to support revenue growth and margins, particularly during the dry season when demand for drinking water typically increases.
Life Water's annual drinking water production capacity had increased by 40% to 626 million litres as at end-4QFY2026, while three new distribution centres (Tawau, Lahad Datu, and Keningau) are set to be commissioned by end-FY2026.
That new warehouse and Sandakan distribution center confirm management is really serious about scaling up their logistics efficiency. Long term this should keep the margins healthy once the overhead costs stabilize after the expansion.