Home Capital Broker's Calls

Sarine gets an upgrade by DBS as growing trade revenues expect to lift margins

Samantha Chiew
Samantha Chiew5/20/2022 04:42 PM GMT+08  • 3 min read
Sarine gets an upgrade by DBS as growing trade revenues expect to lift margins
Photo: Bloomberg
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

DBS Group Research is upgrading its call on diamond tech company Sarine Technologies to “hold” from “fully valued” with a higher target price of 50 cents from 45 cents previously.

On May 15, Sarine announced its 1QFY2022 ended March business update, which highlighted that the group experienced no material impact from the geopolitical uncertainties during that period. Sanctions notwithstanding, the flow of rough diamonds into the value chain, including those of Russian origin, continued unabated in 1QFY2022, with the midstream polishing activities commensurately robust, exceeding 100,000 stones daily.

On the back of these, the group’s revenue for 1QFY2022 came in 9.9% lower y-o-y at US$15.6 million, while gross margin stood at 71.8%. The group notes that 1QFY2021 was an exceptionally strong quarter.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now