Sarine Technologies Ltd (SGX: U77) is involved in the development and production of evaluation, planning, processing, and finishing systems used in the diamond industry. Over the past five years, Sarine’s shares have not done well at all. At its closing share price of S$0.245 for the week, it has tumbled some 92% since hitting S$3.00 in August 2014.
Headwinds in the diamond industry have hit Sarine’s business hard.
From 2014 to 2018, Sarine’s revenue fell 33%, gross profit tumbled 38%, and net profit plunged 72%. As a result, dividend per share has also plummeted, from 5.0 US cents per share in 2014 to 3.0 US cents per share in 2018. This is a far cry from its growing dividends from 2009 to 2013.
The woes are continuing into 2019.
For its second quarter of this year, Sarine’s interim dividend has been slashed by 75% to 0.50 US cents per share, down from 2.0 US cents per share a year back. The nose-dive is on the back of revenue declining by 35% and the company going into a net loss for the quarter.Source: Sarine Technologies Ltd 2018 annual report
The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.