Sarin Technologies rated 'buy' by Maybank Kim Eng

Stock Name: Sarin
Company Name: SARIN TECHNOLOGIES LTD

Research House: Maybank Kim Eng

Price Call: BUY

Target Price: 1.82

Maybank Kim Eng Research in a May 24 research report says: "Sarin announced a proposed 1-for-4 bonus share issue on 6 May 2012. The proposed issue received in-principle approval from the Singapore Exchange on 14 May 2012.

"Further to this, Sarin also announced the books closure date for the bonus share issue to be on 24 May 2012. The existing share capital of the company comprised of 271,656,904 shares (including 1,689,000 treasury shares). Up to 67,914,226 new bonus shares will be issued which will increase the total number of shares to 339,571,130.

"We adjust our target price accordingly for the bonus shares. Based on the enlarged number of shares, our target price would now be $1.82, still pegged to 16x FY12F PER. We also made adjustments to the per share figures. MAINTAIN BUY

Maybank cuts Sarin target price

Stock Name: Sarin
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.


 

Sarin Technologies rated 'buy' by Kim Eng

Stock Name: Sarin
Company Name: SARIN TECHNOLOGIES LTD

Research House: Kim Eng

Price Call: BUY

Target Price: 1.42

Kim Eng Research in a Sept 29 research report says: "Sarin launched its Light Performance Technology (LPT) system, the Sarin D-LightTM, last week at the Hong Kong Jewellery & Gem Fair 2011. This is a first step towards rolling out LPT as the next revenue driver, after the successful GalaxyTM system.

"While there are uncertainties in the near term, we remain positive on its long-term prospects. We see no compelling reason to change our revenue forecast for now but we present a sensitivity analysis of our forecast relative to a fall in equipment sales.

"A 40% drop in equipment sales, for example, would result in our target price falling to $0.96, based on 16x PER. Target price adjusted to $1.42, purely for USD/SGD exchange rate changes. MAINTAIN BUY."

Sarin Technologies rated 'buy' by Kim Eng

Stock Name: Sarin
Company Name: SARIN TECHNOLOGIES LTD

Research House: Kim Eng

Price Call: BUY

Target Price: 1.38

Kim Eng Research in a June 29 research report says: "Following our initiation report, Sarin's share price has shot past our previous target price of 91 cents within a month. We were conservative in our valuation considering the illiquidity of the stock prior to our coverage.

"We had postulated that Sarin could be a $3.26 per share stock in more than five years. With these positive developments, this target could be achieved earlier than imagined. Our net profit forecasts for FY2011-2013F are revised upwards by 3-11%.

"We have also reviewed our valuation multiple and believe that Sarin deserves a higher premium as its growth momentum starts to gain traction. Our target price is consequently increased to $1.38, based on 16x PER on revised FY12F EPS. MAINTAIN BUY."

Kim Eng starts Sarin Technologies at buy, target $0.91

Stock Name: Sarin
Company Name: SARIN TECHNOLOGIES LTD

Research House: Kim Eng

Price Call: BUY

Target Price: 0.91

Kim Eng Securities has initiated coverage of Singapore-listed Sarin Technologies (SARI.SI), which makes machinery for the processing of diamonds and gems, with a buy rating and target price of $0.91.

Sarin has an estimated two-thirds share of the market for precision technologies for diamond and gem processing, Kim Eng said in a report.

“Sarin has recovered by leaps and bounds from the global financial crisis with a 617% jump in earnings per share in 2010,” Kim Eng said.

The brokerage added that a change in Sarin's business model has helped it to build more recurring income, and it expects the firm's earnings per share to grow at an average annual growth rate of 25.3% over 2011-2013.

At 9:38 a.m., shares of Sarin were 4% higher at $0.775, and have gained 43.5% since the start of the year.