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.
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.