Sarine

Sarine: Following recent concerns in regards to the challenging diamond industry conditions and its upcoming 4Q results, Sarine has guided for 4Q14 revenue to be in line with or slightly better than those of 4Q13, notwithstanding the challenges currently faced by the diamond industry. Management strongly believes that the group will be profitable for the quarter, which will allow it to recommend during its AGM to approve a final dividend for the year in accordance with its published dividend policy. Overall, Maybank-KE continues to rate Sarine at Hold with a TP of $2.98, pending better credit conditions for the industry, faster penetration for Sarine’s GalaxyTM, Sarine LightTM and Sarine LoupeTM and new game-changing products. Following the recent sell-down, Sarine now trades at 20.4x forward P/E, compared to its three-year historical average of 15.0x.