Sarine

Sarine: Results at the bottom end of estimates; Sarine 4Q13 net profit accelerated 17% to $4.5m, on revenue of $16.7m (+18%), as the group benefitted from increased capex spending by diamond manufacturers on delivery of 15 Galaxy family systems. Full year earnings of $23.9m (+15%) and revenue of $76.4m (+7%) came below street estimates by 7% and 2% respectively, as the group delivered a record 46 systems and grew total installed base to more than 140 Galaxy family systems. With accelerated Galaxy systems penetration, Sarine benefitted from higher recurring revenue of over 30% on sales. Group expects to ride on the strong demand for its products and accelerate delivery of Galaxy family systems in 2014. In addition, Sarine will intensify its marketing efforts for both Sarine Light and Sarine Loupe to increase its contribution Mgmt declared final DPS of US2¢, for total FY13 DPS of US6¢, compared to FY12's US4.5¢. Further, group proposed to raise its dividend payout by 33% to a semi-annual 2¢ DPS, from 2014 onwards.