Micro-Mechanics Q4 net profit up 21.4% to S$4.8 million on revenue growth

 

SEMICONDUCTOR play Micro-Mechanics Holdings on Saturday reported net profit of S$4.8 million for the fourth fiscal quarter ended June, up 21.4 per cent from net profit of S$3.9 million in the corresponding period last year.

 

This pushed the company' s earnings for FY2021 to S$18.1 million, 23.3 per cent higher than earnings of S$14.7 million in FY2020.

 

Earnings per share (EPS) for Q4 rose to 3.44 Singapore cents from 2.83 cents in the year-ago period, while EPS for FY2021 was up to 12.99 cents from 10.54 cents in FY2020.

 

The higher net profit for Q4 was primarily attributable to a 16.9 per cent increase in revenue to a quarterly record-high of S$19.1 million from S$16.4 million in the year-ago period, on the back of " broad-based sales growth" across a number of the group' s markets. The only exceptions were Taiwan and Japan.

 

Cost of sales for the quarter rose 18.1 per cent to S$8.8 million from S$7.5 million in Q4 last year. Gross profit consequently was up by a more muted 15.9 per cent year-on-year to S$10.3 million from S$8.9 million.

 

The company' s board of directors is recommending a final dividend of six Singapore cents per share and a special dividend of two cents per share for FY2021. This brings the group' s total dividend for FY2021 to 14 cents per share, versus 12 cents per share in FY2020.

 

If approved by shareholders at the annual general meeting on Oct 29, the dividends will be paid out on Nov 19.

 

Chris Borch, chief executive of Micro-Mechanics, said: " The group has benefited from the resilience of the global semiconductor industry which continued to show steady growth amid the economic headwinds from the Covid-19 pandemic.

 

" Despite facing many challenges during this unprecedented period, the group was able to deliver record revenue and profits in FY2021. In addition to rewarding shareholders, our decision to raise the total dividend payout again in FY2021 is a signal that we remain confident in the long-term prospects of Micro-Mechanics."

 

Micro-Mechanics continues to believe that the semiconductor industry is poised for a prolonged period of solid growth as chips become increasingly embedded in almost every aspect of modern life.

 

The company said its continued success will hinge on its ability to " identify opportunities and prioritise the initiatives and investments that enhance stakeholder value" .

MICRO-MECHANICS Holdings, which manufactures high-precision tools and parts used in the semiconductor industry, on Friday posted a 7.9 per cent rise in net profit to S$4.2 million for its third quarter ended March 31, 2021, from S$3.9 million a year ago.

 

The results translate to earnings per share of three Singapore cents for the third quarter, from 2.78 cents the year before.

 

Revenue was up 9.1 per cent to S$17.7 million, from S$16.2 million a year ago. This came on the back of buoyant sales growth in the Singapore and China markets, which more than offset slower sales registered in Taiwan, Europe, Japan and the US, the company said in a bourse filing.

 

The company declared an interim dividend of six Singapore cents per share for FY2021, up from an interim dividend of five cents in FY2020. This amounted to S$8.3 million paid on Feb 25.

 

" The global semiconductor industry got off to a positive start in 2021. As a result, the group benefited from continuing demand for our high precision tools and parts, and recorded steady increases in both our top and bottom lines during Q3 2021," said Micro-Mechanics' chief executive Chris Borch.

 

The company noted the World Semiconductor Trade Statistics' release which forecasted a 10.9 per cent increase in semiconductor sales this year.

 

" As the semiconductor industry continues to grow and develop new equipment and processes for manufacturing chips with device geometries below 10 nanometers, we think only a handful of suppliers will have the capabilities to meet the increasingly stringent requirements of the industry. We believe that our strong customer focus, rigorous evaluation process for making investments, and the great work by our people should enable the group to maintain a healthy gross profit margin," Mr Borch added.