Micro-Mechanics net profit up 16.1% in Q2

MICRO-MECHANICS has posted a second-quarter net profit of S$3.9 million, up 16.1 per cent from the same period a year ago.

Revenue in the three months ended Dec 31 rose 10.3 per cent to S$15.6 million on higher sales in Singapore, the Philippines, China and the United States, the group said in a bourse filing on Saturday.

Q2 net profit margin was 24.9 per cent, versus 23.7 per cent in Q2 last year and 29.2 per cent in the first quarter of this year.

An interim dividend of four Singapore cents per share was declared, to be paid on Feb 13. This is up from three Singapore cents a share in the same period last year.

Q2 earnings per share was 2.81 Singapore cents, up from 2.42 Singapore cents in the same period a year earlier.

Net asset value per share was 41.12 Singapore cents as at Dec 31, up from 39.39 Singapore cents as at June 30 last year.

The group, which produces consumable tools and parts used in wafer fabrication and assembly processes, said in a statement: "We believe the semiconductor industry's robust growth during 2017 may indicate a prolonged period of stronger industry growth as chips become increasingly used in nearly every aspect of modern life.

"While this would be a welcome change from the sluggish industry conditions witnessed during 2016, the semiconductor industry is being increasingly driven by price-sensitive consumer applications.

"As such, we expect to see continued price and cycle-time pressures from our customers. Together with rising costs and a shortage of skilled workers, the operating environment for the group is expected to remain challenging."

Micro-Mechanics shares closed unchanged at S$2.42 last Friday.