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12-12-2012, 07:54 AM
(This post was last modified: 12-12-2012, 08:00 AM by shanrui_91.)
I have been watching this stock for months but just can't find a favourable entry price to initiate a position. Quite surprised that no one has started this thread so far.
Sarin is the market leader in the field where it manufacture machine that helps to increase the productivity and yield of diamond by mapping, planning or grading through the entire process from rough diamond to polished diamond. These enhancement of yield is very important for the margin of the diamond processor. However, as the diamond industry is very cyclical, Sarin's sales follow the cyclical industry as well.
Since then, it has come up with the Galaxy series which allows it to generate recurring revenue based on annual maintenance contract as well as per usage basis. The profit margin is also much higher for this recurring segment though I am not sure how high it is. Currently, the recurring revenue account for ~20-25% of its revenue and will still be growing. More than 80% of its revenue comes from India which explain the drop in profit and price not too long ago.
The company has really high ROE and balance sheet is strong. FCF has also been pretty strong for this comapny. Chartered Asset Management is also a long term shareholder in this company just like their stakes in boustead and cse global.
(Not vested)
Sarin is the market leader in the field where it manufacture machine that helps to increase the productivity and yield of diamond by mapping, planning or grading through the entire process from rough diamond to polished diamond. These enhancement of yield is very important for the margin of the diamond processor. However, as the diamond industry is very cyclical, Sarin's sales follow the cyclical industry as well.
Since then, it has come up with the Galaxy series which allows it to generate recurring revenue based on annual maintenance contract as well as per usage basis. The profit margin is also much higher for this recurring segment though I am not sure how high it is. Currently, the recurring revenue account for ~20-25% of its revenue and will still be growing. More than 80% of its revenue comes from India which explain the drop in profit and price not too long ago.
The company has really high ROE and balance sheet is strong. FCF has also been pretty strong for this comapny. Chartered Asset Management is also a long term shareholder in this company just like their stakes in boustead and cse global.
(Not vested)