Sarine Technologies' Q2 earnings skyrocket 126% to about $8.05m

Manufacturing profitability and consumer demand soared.

Sarine Technologies' profits soared by 126% YoY in Q2 to USD 6m (roughly $8.05m), thanks to better midstream activities.

According to a report by Maybank Kim Eng, Sarine's profits were boosted by raised manufacturing profitability, stronger consumer demand, as well as improved modstream liquidity after destocking 2015.

In addition, interim DPS for the quarter came in at USD 2 S cents.

For Q2, Sarine delivered a record of 20 Galaxy systems, bringing total installed bases to 253. The report noted that recurring revenue accounted for 40% of total revenue for the first half of 2016.

Sarine expects FY16 to be a record year for Galaxy deliveries, incontrast to the average 40+ per year. However, Maybank Kim Eng asserted that the record deliveries will also be due to the new lower-end Meteor, which significantly contributed to unit costs from Q1.

Meanwhile, Sarine Profile continues to make more in-roads.

"We see progress in Sarine Profile, now used by several retailers in Japan, China, Singapore and the US. Sarine said there are plans for expanded programmes with existing customers and the addition of new customers in subsequent quarters," stated Maybank Kim Eng.

"More adoption by reputable players could lend further confidence to our long-term investment thesis," it added.