Precision tools maker Micro-Mechanics Holdings on Monday reported a 53 percent jump in first-quarter net profit on the back of higher revenue, growth in profit margin and a tight rein on expenses.
Singapore listed-Micro Mechanics, a maker of high precision tools and parts for the semiconductor industry, said net profit rose to a record level of S$5.2 million in the quarter ended September 30 from S$3.4 million last year.
Group revenue rose 32.5 percent to S$17.7 million in the quarter, the company said in a statement on Monday.
"We continued to benefit from robust demand from customers in our major markets, reflecting the strong underlying growth of the global semiconductor industry since the beginning of 2017," said Chris Borch, CEO of Micro-Mechanics.
Sales in China, the largest market for Micro-Mechanics, increased 48.1 percent to S$5.2 million in the quarter.
Sales at its second largest market, Malaysia, rose 14.3 percent to S$3.5 million.
The World Semiconductor Trade Statistics recently raised its 2017 semiconductor sales growth forecast to 17 percent from its previous prediction of 11.5 percent.
""We believe the semiconductor industry's robust growth this year may herald a prolonged period of strong growth as chips are being increasingly used in nearly every aspect of our daily life," said Borch.
Micro-Mechanics shares gained 1 percent to S$1.87 prior to the lifting of trading halt on the Singapore Exchange. The stock has surged 117 percent so far this year.