Micro-Mechanics Q2 net profit rises 2.3% to S$4.6m on higher sales
SEMICONDUCTOR play Micro-Mechanics (Holdings) 5DD posted a 2.3 per cent rise in net profit to S$4.6 million for its second quarter ended Dec 31, 2021, from S$4.5 million a year ago.
Revenue for Q2 also rose 8.7 per cent to S$20.4 million, from S$18.7 million in the same period last year.
This was mainly due to sales growth in the company's 3 largest geographical markets in China, the US and Malaysia, amid continued growth in the semiconductor industry, Micro-Mechanics said in a bourse filing on Friday (Jan 28).
For the first half ended Dec 31, its net profit was S$9.5 million, up 4.6 per cent from S$9.1 million a year ago. Revenue was up 10.7 per cent to S$40.8 million, from S$36.9 million a year ago.
Q2's earnings per share stood at 3.28 Singapore cents, up from 3.2 cents a year ago, while earnings per share for the first half also rose to 6.85 cents from 6.55 cents a year earlier.
An interim dividend of 6 cents per share was declared for the half year, unchanged from a year ago. Noting that the payout is around 88 per cent of its earnings per share for H1 FY2022, the group said it is "a reflection of the group's confidence in its long-term prospects".
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The dividend will be paid out on Feb 22, after books closure on Feb 10.
As for the second half of FY2022, Micro-Mechanics said it expects a challenging operating landscape, amid a worsening supply-chain situation, trade friction between the US and China, spiking energy costs and rapidly rising costs for materials, shipping and labour.
It also warned that volatile energy markets may also result in power cutbacks that can hit its plant in China, which had been unable to operate for several days in Q1 due to electricity rationing by the local provider.
Micro-Mechanics manufactures high precision tools and parts used in process-critical applications for the semiconductor industry.
Shares of Micro-Mechanics were trading flat at S$3.32 as at the midday break on Friday, before the release of the results.
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