Company Name: SARIN TECHNOLOGIES LTD
| Research House: Maybank Kim Eng | Price Call: BUY | Target Price: 1.82 |
Maybank Kim Eng lowered its target price for Sarin Technologies, an Israeli company that sells diamond scanners, to $1.82 from $2.28 and kept its buy rating, to account for a proposed bonus share issue.
Shares of Sarin were up 4.6% at $1.15, and have surged 89% since the start of the year, outperforming the key Straits Times Index’s 5% gain.
Sarin has proposed a 1-for-4 bonus share issue, which would increase existing share capital to 339.6 million shares from 271.7 million shares, said Maybank.
Sarin plans to expand into a new growth market, the polished diamond segment, by launching its light performance technology product D-Light in a few weeks, the broker said.
Maybank estimates it could potentially contribute annual revenue of about US$40 million ($51 million) and net profit of US$29 million.
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