$MICRO-MECHANICS (HOLDINGS) LTD(5DD.SI)$Micro-Mechanics Q3 net profit rises 7.9% to S$4.2m

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.