It guided for a 4Q15 revenue of USD12.25m.
Things have been going the company’s way as the diamond industry developed positively in the last quarter of 2015. However, Sarine Technologies really needs all the boosts it can get, as its profitability is highly sensitive to small changes in revenue.
According to Maybank Kim Eng, the company has some outstanding industry developments, such as good holiday season sales in the US market and positive initial wholesale buying for Chinese New Year.
“More than USD5.5b of inventory has been cleared from Indian manufacturers’ stocks and sentiment in the Indian manufacturing industry has significantly improved,” Maybank Kim Eng said.
However, Maybank Kim Eng says it’s too early to tell if Sarine Technologies can sustain this success.
“This is a positive update but not significant enough for us to re-rate the stock as we prefer to see more conclusive evidence of sustained recovery into 1Q16,” Maybank Kim Eng added.
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