07 June 2013

My View on Sarin Technology (Singapore Listed Counter)

I first noticed Sarin Technology about a year ago. However I did not do much homework on it until recently I read a book related to diamond industry, then only I realize how diamond industry works. Most of the diamond cutter / retailers are controlled by Jews families. So it is a Niche industry, and require some sort of entry barrier to get into this industry.

Sarin Technology mainly is the supplier of machine to diamond retailers. It mainly involves in Research and Development. The Galaxy series is its flagship product, which could bring recurring revenue to Sarin.

The Gross Profit Margin is quite high, stands at above 20% except for year 2008 & 2009 (Global Financial Crisis). With recurring income model in place, I believe the revenue could be quite stable if not increasing in coming years. Nonetheless, I believe it is also affected by the global economy, so I would think of accumulating it when another global financial crisis comes.

With current PE of around 18X, I would put it in my watch list first.

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