Sarine Technologies

[rogerwilco]

The direct link to Sarin CIMB report is
https://cimbequityresearch.cimb.com/EFAO...9D0&A=CIMB

[yawnyawn]

From CIMB's Aug report

Sarin Tech derives 77% of its revenue from India and has 69% of its
fixed assets deployed in India. Earnings are predominantly in US$, so there
is no margin impact. However, the continued devaluation of the Rs and
bank credit tightening do not bode well for the Indian consumers. Reduced
purchasing power may crimp Sarin’s customers’ sales to end-users. Some of
that drag may be mitigated with new products where Indian customers can
afford smaller upfront costs with pay-per-use additional charges. Sarin’s
monopolistic position will also enable the company to defend margins
better, but cannot shield it indefinitely from a dramatic macroeconomic
slowdown. We rate Sarin Outperform with a target price of S$1.98, based
on 16x P/E.


Seasonality
Sarin faces some seasonality. India typically contributes 75-80% to its revenue.
Hence, the group is exposed to Diwali festivities (and Christmas) in the fourth
quarter. Diwali or Deepavali is India‟s biggest holiday of the year and the
diamond-manufacturing industry can take Diwali breaks of 2-6 weeks during
Oct/Nov. There is also a summer lull in May (second quarter) that lasts a week
or two, although most manufacturers typically continue operations or operate
on fewer shifts.
The drop in its 3Q12 revenue could be traced to a yawning gap between rough
and polished diamond prices, which resulted in reduced spending by
manufacturers.

INR has fallen almost 20% against USD since May'13. Will look to see how Indian consumers respond in the next few Qs of the company's earnings.
(not vested but putting it in my watchlist)

[Nick]

Sarin Technologies
Hong Kong NDR Feedback

http://research.maybank-ib.com/pdf/docum...3_5042.pdf [Research Report]

(Vested)

[zerobeta]

An interview published in latest issue of The Edge on Sarin Tech.

It gave a good overview of the company on its history, and future plan. A good read.

you still have the link?

also does someone have the answer to the impact of growing market of synthetic diamonds on Sarin sales?

[zerobeta]

a couple of questions:
1) is there a way to find the composition of its sales by products? what's the most significant/least important product?
2) is there a price catalog for its products?
3) how does exactly pay per carat or pay per report considered as recurring sales? if the manufacturers aren't evaluating any diamonds, no income will flow in right?
4) what is the penetration rate of their products? or more precisely, what's the % of global manufacturers that have adopted Sarin and other competitors' technology (i.e. how much more market size that can be captured?)
5) For Sarine Light™ and Loupe™, is there already a cost-effective substitute for them? or are they the first of its kind?

[jovialger]

3Q13 results is out.

3Q sales +48% yoy to $17.3m
NP +124% yoy to $5.7m

GPM further improved from 70% in 3Q12 to 73% in 3Q13.

Press release:
http://infopub.sgx.com/Apps?A=COW_Corpor...esults.pdf

Presentation:
http://infopub.sgx.com/Apps?A=COW_Corpor...r_2013.pdf

[Wildreamz]

The PE ratio of Sarine seems to raise too high too fast lately.

Has the market been too optimistic on its future prospect?

[Tiggerbee]

Fidelity has been buying.

[Nick]

Sarine Posts Record Performance for Third Consecutive Year

FY 2013 Revenue and Net Profit Grew 20% and 28% to US$76.4 Million and US$26.5 Million Respectively (versus FY2012 on a comparable basis before one-off tax of US$ 2.6 million on exempt profits for prior periods)

 Record full year performance driven by accelerated GalaxyTM-related penetration and usage and overall positive business sentiments
 15 GalaxyTM family systems deliveries in Q4 2013 brought full-year deliveries to a record high of 46 systems and expanded total installed base to over 140
 Final dividend of US 2.0 cents per share recommended, so total dividend payout for FY2013 amounts to US 6.0 cents per share; dividend policy for 2014 increased to US 2.0 cents per share every six months
 Marketing efforts for Sarine LightTM expanding to U.S. and additional Far and Southeast Asian countries in 2014; full commercial launch of Sarine LoupeTM expected this year

http://infopub.sgx.com/FileOpen/Sarine_F...eID=276382 [Press Release]

http://infopub.sgx.com/FileOpen/Financia...eID=276381 [Financial Statement]

http://infopub.sgx.com/FileOpen/Corporat...eID=276383 [Slides]

This is one of my best performing investments in 2013. Higher dividends for 2013 and higher base dividends of 4 US cents targeted for 2014. The commercialization of D-Light and D-Loupe in the retail sector seems rather exciting.

(Vested)

[pianist]

one of my best performing as well, net exposure is at 80cents
vested & nil sold to-date
btw moderator, time to rename it to its latest respect name pls?