Brokers' take

Micro-Mechanics (Holdings) | Accumulate Target price: S$2.50 Jan 30 close: S$2.35 Phillip Capital, Jan 30

Revenue and profit after tax and minority interests (PATMI) for Q218 were below expectation.

With the strong October and November semiconductor sales (up a combined 21 per cent year-on-year), we were expecting stronger revenue and earnings growth. Whilst part of the weaker topline was due to currency movement and perhaps some trade loading (inventory was up 36 per cent YoY), Q218 did miss our forecast.