Micro-Mechanics Q3 net profit up 5.8% to S$4.4m on double-digit sales

SEMICONDUCTOR play Micro-Mechanics (Holdings) : 5DD 0% posted a 5.8 per cent rise in net profit to S$4.4 million for its third quarter ended Mar 31, 2022, from S$4.2 million a year ago.

This was driven by a stronger revenue in the quarter, which rose 11.2 per cent to S$19.7 million, from S$17.7 million a year earlier.

The company had registered double-digit sales in its 3 largest geographical markets in China, the US and Malaysia, amid the continuing uptrend in the global semiconductor market, it said in a bourse filing on Friday (Apr 29).

Earnings per share stood at 3.18 Singapore cents for the quarter, up from 3 cents a year ago.

No dividend was declared for the quarter, unchanged from a year ago.

For the 9 months ended Mar 31, net profit increased 5 per cent to S$13.9 million on the back of revenue growth of 10.8 per cent to S$60.5 million.

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In the 9 months, the company said its sales in China – its largest geographical market – grew 23.1 per cent to S$21.1 million, while sales from its second largest market in the US rose 10 per cent to S$12.1 million. Meanwhile, sales from Malaysia rose 13.5 per cent to S$9.6 million.

Micro-Mechanics chief executive Chris Borch noted that it saw many challenges to its operations in the period, including government restrictions due to Covid-19, supply chain disruptions, rising energy costs and other economic and political concerns.

“Indeed, these challenges are helping us to accelerate structural changes, implement process improvements and develop innovations while strengthening our focus on key initiatives which we believe will make Micro-Mechanics an even more valuable supplier to our customers and a stronger competitor in the industry,” Borch said.

Shares of Micro-Mechanics were trading flat at S$3.14 at the midday break on Friday.