Edison Investment Research - Sarine Technologies (U77) Sarine Technologies - Preparing for the peak season

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Edison Investment Research

Milosz Papst

Sarine Technologies - Preparing for the peak season

Sarineâ€™s ytd (Jan to Sep) profitability was relatively subdued, with lower equipment sales due to excess midstream inventories in Q2 and Q3, as well as the illicit actions of competitors. Simultaneously, Sarine incurred considerable R&D costs related to the development of Clarity and Colour grading technology and Sarine Profile. This was further exacerbated by the strengthening of the Israeli shekel. However, downstream demand remains strong (according to the company), while new products and lower R&D expenses should support earnings going forward. Sarine trades on a P/E of 16.3x FY17e, a 35% discount to the peer group.

22/11/2017 5 EN

Underlying

Sarine Technologies

Sarin Technologies Ltd. develops, manufactures, markets and sells precision technology products for the processing of diamonds and gemstones. Co.'s products provide solutions for every stage of the rough diamond manufacturing process, from determining the optimal polished gem based on true dollar value, through laser cutting and shaping, to inline quality control of the faceting. Co. also aids in key aspects of the polished diamond trade - the grading of a diamond's Cut and its Light Performance and by providing tools that simplify the online trade and enhance the in-store buying experience.

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IL0010927254 Singapore Exchange Israel

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Milosz Papst

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Sarine Technologies - Preparing for the peak season

Sarine Technologies - Focus on cost savings and marketing efforts

Sarine Technologies - Focus on cost savings and marketing efforts

Sarine Technologies - External factors remain challenging

Record - AUME momentum and a sharper focus

Actinogen Medical - Funding in place through key catalysts

Henderson Opportunities Trust - A differentiated exposure to smaller companies

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