Edison Investment Research - Sarine Technologies (U77) Sarine Technologies - Growing importance of recurring revenue

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Edison Investment Research

Milosz Papst

Sarine Technologies - Growing importance of recurring revenue

Following a considerable oversupply of polished diamonds in H217, conditions in the midstream market have returned to normal post the holiday selling season, as expected. Sarine was able to post a slight increase in sales in Q118 vs the previous year on the back of higher recurring income from its inclusion mapping systems. Equipment sales were largely focused on systems for smaller stones, including the recently launched Meteorite system. Going forward, management expects increased adoption of its comprehensive offering including Sarine Profile, the light performance grading tools, Sarine Diamond Journey and the AI-based 4C grading reports to further drive recurring revenue.

18/05/2018 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

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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 - Growing importance of recurring revenue

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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