29 January 2018
Micro-Mechanics’ 1H18 Net Profit Grows 34.6% to S$9.1 million
Group net profit in 2Q18 increases 16.1% to S$3.9 million
Paying higher interim dividend of 4.0 cents per share on 13 February 2018
Sound balance sheet with cash of S$22.4 million and zero debt
Singapore, 27 January 2018 – Micro-Mechanics (Holdings) Ltd. (“Micro-Mechanics” or the “Group”), a
manufacturer of high precision tools and parts used in process-critical applications for the semiconductor
industry, has delivered a record first half net profit of S$9.1 million for the six months ended 31 December
2017 (“1H18”), up 34.6% from the same period a year ago.
The bottom line was driven by higher revenue, better gross profit margin and a continued tight rein on
expenses. The Group achieved its highest-ever first half revenue of S$33.3 million in 1H18, up 21.1% from
1H17. Gross profit margin in 1H18 also improved to 58.7% from 56.4% in 1H17.
For the second quarter ended 31 December 2017 (“2Q18”), the Group reported a 16.1% increase in net
profit to S$3.9 million on the back of revenue growth of 10.3% to S$15.6 million.
In line with Micro-Mechanics’ long-held practice of rewarding shareholders, the Group will be paying a
higher interim dividend of 4 cents per share (one-tier tax exempt) on 13 February 2018, compared to 3
cents per share a year ago.
CEO of Micro-Mechanics, Mr Chris Borch said, “The growth in the Group’s revenue and net profit in 1H18
reflected the strength of the semiconductor industry, our focus on customers and the value we create for
them, as well as our continual efforts to enhance manufacturing processes, productivity and cost structure.
This enabled the Group to deliver higher profit margins in spite of ongoing selling price and cost pressures.”
According to the Semiconductor Industry Association, world-wide chip sales rose 22.6% during the fivemonth
period from July to November 2017. The World Semiconductor Trade Statistics recently reported
that it expects worldwide chip sales to grow 20.6% to a record US$408.7 billion for 2017, and to increase by
another 7% in 2018.
“Current market forecasts point to an upward trajectory for global chip sales in 2018. We believe this
positive outlook is underpinned by the prevalence of semiconductors in our daily lives. However, we expect
to see continued price and cycle-time pressures as the chip industry is increasingly driven by price-sensitive
consumer applications. We will also need to manage challenges from rising costs and shortage of skilled
workers. As the Group grows, we plan to continue automating our operations, streamlining our processes
and using technology to leverage the know-how and skills of our people,” said Mr Borch.
As at 31 December 2017, Micro-Mechanics had a sound financial position with total assets of S$70.2
million, shareholders’ equity of S$57.2 million, cash and cash equivalents of S$22.4 million and zero debt.
Paying higher interim dividend of 4.0 cents per share on 13 February 2018
Sound balance sheet with cash of S$22.4 million and zero debt
Singapore, 27 January 2018 – Micro-Mechanics (Holdings) Ltd. (“Micro-Mechanics” or the “Group”), a
manufacturer of high precision tools and parts used in process-critical applications for the semiconductor
industry, has delivered a record first half net profit of S$9.1 million for the six months ended 31 December
2017 (“1H18”), up 34.6% from the same period a year ago.
The bottom line was driven by higher revenue, better gross profit margin and a continued tight rein on
expenses. The Group achieved its highest-ever first half revenue of S$33.3 million in 1H18, up 21.1% from
1H17. Gross profit margin in 1H18 also improved to 58.7% from 56.4% in 1H17.
For the second quarter ended 31 December 2017 (“2Q18”), the Group reported a 16.1% increase in net
profit to S$3.9 million on the back of revenue growth of 10.3% to S$15.6 million.
In line with Micro-Mechanics’ long-held practice of rewarding shareholders, the Group will be paying a
higher interim dividend of 4 cents per share (one-tier tax exempt) on 13 February 2018, compared to 3
cents per share a year ago.
CEO of Micro-Mechanics, Mr Chris Borch said, “The growth in the Group’s revenue and net profit in 1H18
reflected the strength of the semiconductor industry, our focus on customers and the value we create for
them, as well as our continual efforts to enhance manufacturing processes, productivity and cost structure.
This enabled the Group to deliver higher profit margins in spite of ongoing selling price and cost pressures.”
According to the Semiconductor Industry Association, world-wide chip sales rose 22.6% during the fivemonth
period from July to November 2017. The World Semiconductor Trade Statistics recently reported
that it expects worldwide chip sales to grow 20.6% to a record US$408.7 billion for 2017, and to increase by
another 7% in 2018.
“Current market forecasts point to an upward trajectory for global chip sales in 2018. We believe this
positive outlook is underpinned by the prevalence of semiconductors in our daily lives. However, we expect
to see continued price and cycle-time pressures as the chip industry is increasingly driven by price-sensitive
consumer applications. We will also need to manage challenges from rising costs and shortage of skilled
workers. As the Group grows, we plan to continue automating our operations, streamlining our processes
and using technology to leverage the know-how and skills of our people,” said Mr Borch.
As at 31 December 2017, Micro-Mechanics had a sound financial position with total assets of S$70.2
million, shareholders’ equity of S$57.2 million, cash and cash equivalents of S$22.4 million and zero debt.
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