Micro-Mechanics Q4 profit jumps; declares special dividend

Precision tools maker Micro-Mechanics Holdings on Monday reported a 61 percent jump in fourth-quarter net profit, sending its shares up as much as 6.2 percent.

tools
Image for representation purposes only. Reuters

Precision tools maker Micro-Mechanics Holdings on Monday reported a 61 percent jump in fourth-quarter net profit, sending its shares up as much as 6.2 percent.

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$4.6 million in the quarter ended June 30 from S$2.8 million last year.

Group revenue rose 19.5 percent to S$15.4 million in the quarter, driven by a strong upturn of the global semiconductor industry, the company said in a statement on Monday.

Sales in China, the largest market for Micro-Mechanics, increased 3.6 percent to S$14.8 million in fiscal 2017, weighed down by depreciation of the Chinese Renminbi against Singapore Dollar.

Sales at its second largest market, Malaysia, rose 11.9 percent to S$11.9 million.

The World Semiconductor Trade Statistics recently raised its 2017 semiconductor sales growth forecast to 11.5 percent from its previous prediction of 6.5 percent.

"We believe the robust first-half start to the year may foreshadow a prolonged period of stronger industry growth as chips become increasingly used in nearly every aspect of modern life," said Chief Executive Chris Borch.

The company proposed to pay a final dividend of 4 cents per share and a special dividend of 1 cent per share.

At 0820 GMT, Micro-Mechanics shares rose 4.4 percent to S$1.43 on the Singapore Exchange. The stock has gained 65 percent so far this year.

tools
Image for representation purposes only. Reuters

Precision tools maker Micro-Mechanics Holdings on Monday reported a 61 percent jump in fourth-quarter net profit, sending its shares up as much as 6.2 percent.

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$4.6 million in the quarter ended June 30 from S$2.8 million last year.

Group revenue rose 19.5 percent to S$15.4 million in the quarter, driven by a strong upturn of the global semiconductor industry, the company said in a statement on Monday.

Sales in China, the largest market for Micro-Mechanics, increased 3.6 percent to S$14.8 million in fiscal 2017, weighed down by depreciation of the Chinese Renminbi against Singapore Dollar.

Sales at its second largest market, Malaysia, rose 11.9 percent to S$11.9 million.

The World Semiconductor Trade Statistics recently raised its 2017 semiconductor sales growth forecast to 11.5 percent from its previous prediction of 6.5 percent.

"We believe the robust first-half start to the year may foreshadow a prolonged period of stronger industry growth as chips become increasingly used in nearly every aspect of modern life," said Chief Executive Chris Borch.

The company proposed to pay a final dividend of 4 cents per share and a special dividend of 1 cent per share.

At 0820 GMT, Micro-Mechanics shares rose 4.4 percent to S$1.43 on the Singapore Exchange. The stock has gained 65 percent so far this year.

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