Sarine Technologies

SP: U77

SGD145m market cap

SGD0.41 last close

Sarine is the leading provider of equipment and services for the diamond manufacturing industry. These help to automate planning and maximise yield. It has also developed products that allow it to enter the much larger and more profitable wholesale and retail segments of the industry.

Investment summary

Sarine’s top-line growth continues to be affected by the multiple challenges the midstream diamond business is currently facing, which impair the sector’s cash generation (and Sarine’s equipment sales). Having said that, scanning activity remains at record-high levels and management expects the number of scanned stones to increase by 20% in 2018. Moreover, corporate overheads and R&D expenses are being kept below last year. In the long term, lab-grown diamonds represent both a risk (which is however difficult to quantify currently) and an opportunity to Sarine’s business.

Sector
Industrials
Share price graph
Price performance
%
1m
3m
12m
Actual (16.3) (20.4) (65.0)
Relative* (17.8) (26.2) (62.4)
52-week high/low S$1.3/S$0.4
*% relative to local index
Key management
Daniel Gilnert Chairman
David Block CEO
Bill Kessler CFO