3 Things That Investors Should Know From Sarine Technologies Ltd Latest Results Presentation
Sarine Technologies Ltd (SGX: U77) is an Israel-based company engaged in developing, manufacturing, marketing and selling precision technology products for processing diamonds and gemstones.
Its products provide solutions for every stage of the rough-diamond manufacturing process.
The company reported its first-quarter results for financial year 2017 a few weeks ago. In this article, we will like to share a few highlights from the company’s latest result presentation.
First of all, let’s have a look at the overall result.
Source: Sarine 2017 First Quarter Presentation
Revenue was up due to higher capital equipment sales and more recurring income. Yet, operating profit was down due to higher expense to support growth and new services and the strengthening of Israeli shekel against the US dollar.
Sarine has a dominant position in the markets that it operates in. It has more than 70% market share.
Its prospects for 2017.
David Block, Sarine’s newly-appointed CEO, made the following comments about the company’s prospects.
“We have a number of significant successes in the APAC region and the list of new customers includes two new chains in Japan, K-Uno and Sadamatsu, and a large buyers’ group in Australia, Leading Edge Group……
We intend to double the number of stones scanned for Sarine ProfileTM in 2017 and expect its contribution to account for around 5% of group sales this year”
The company expects the positive business conditions in the diamond industry to persist in FY2017, which is positive to Sarine’s sales.
Also, Sarine is currently testing new technologies for Clarity and Colour grading of polished diamonds, which could address a market of US$ 500 million. This is expected to start in the third quarter of FY2017.
Overall, the company expects 2017 to be a good year due to positive business condition and continuous growth in sales of its Sarine Profile.