Sarin: (Key Feature in The Edge) New diamond processing products opens new mkt and boosts earnings.
Co. note that its Galaxy 1000 has been gaining popularity and has helped boost dd for its other products such as its rough diamond planner, the DiaMark. Grp is targeting entry into the polished diamonds mkt and plans to launch in Sept a product called D-Light, that employs light performance technology on diamonds. Add that if grp is successful in entering mkt for polished diamonds, it could dbl its rev base over time.
Recall that 2Q11rev was at a record US$15.6m, +8.8% yoy while net profit was at US$5m, +8.4% yoy. In the absence of any negative industry signals, Kim Eng has Buy Call and $1.34 TP, citing grp’s revolutionary product and recurring rev to sustain performance.