Micro-Mechanics rides chip boom, posts higher Q1 profit

MICRO-MECHANICS (Holdings) 5DD : 5DD 0% saw its earnings benefit from the global semiconductor boom, with the maker of high-precision tools and parts for the industry reporting a net profit of S$5 million for the quarter to September, 6.9 per cent higher year on year.

The improved bottom line, noted Micro-Mechanics in a regulatory filing on Thursday (Oct 28), was due to record quarterly revenue of S$20.5 million, up 12.7 per cent year on year from Q1FY21.

The company's sales across the majority of its key geographical markets went up, led by the performance in the US and China.

Particularly, sales in China went up 33.7 per cent to S$7.3 million in the quarter, accounting for 36 per cent of Micro-Mechanics' revenue, making the country its largest market.

US sales increased by approximately 8.8 per cent to S$4 million, contributing to 20 per cent of Micro-Mechanics' revenue, emerging as the second largest market for the mainboard-listed company.

The company has cash and cash equivalents of S$24.6 million, total assets of S$77.3 million and shareholders' equity of S$63.2 million - with no bank borrowings.

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The counter ended 3 cents higher at S$3.25 on Thursday (Oct 28), after the financial results were released at noon.