Numbers in S$ million unless stated otherwise.
| Six Months Ending | 31 Dec 2023 | 31 Dec 2022 | % Change |
|---|---|---|---|
| Revenue | 29.35 | 36.91 | (20.5) |
| Gross Profit | 13.93 | 17.86 | (22.0) |
| Net Profit | 4.11 | 6.14 | (33.0) |
| EPS (in cents) | 2.96 | 4.42 | (33.0) |
| DPS (in cents) | 3.00 | 6.00 | (50.0) |
By geography, Singapore revenue declined 56% to S$4.98M; Malaysia revenue declined 9% to S$5.34M; U.S. revenue declined 34% to S$9.39M; while China revenue increased 4% to S$9.90M. 1H2024 cash & equivalents declined 17% to S$14.82M with no bank borrowings. CEO of Micro-Mechanics, Mr Chris Borch said, “The Group continued to experience significant challenges during 1H24 with lower sales registered across the majority of our key geographical markets with the exception of China.” An interim DPS of 3 cents was declared, which will be paid out on 19 Feb 2024.
My Thoughts
MMH is experiencing a cyclical downturn in the semiconductor industry, which resulted in significantly lower earnings from a high base in 2023. But this is part and parcel of a business. The company was generous to declare a DPS of 3 cents, even though EPS was only 2.96 cents. So far, I have not identified any reason to change my view of the company and its management. Will monitor for opportunities to accumulate.
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