Micro-Mechanics Holdings (MMH) has reported a net profit of $6.1 million for the six months ended 31 December 2022, down 35.5% from 1HFY2022.
This translates to earnings per share of 4.42 cents for 1HFY2023, down from 6.85 cents in the year earlier period.
For the manufacturer of high precision tools and parts used in process-critical applications for the semiconductor industry, group revenue eased 9.6% to $36.9 million in 1HFY2023, reflecting slower conditions in the global semiconductor industry and the difficult operating environment in China.
Cost of sales also increased to $19.0 million for the period, up 2.3% y-o-y from $18.6 million in 1HFY2022.
Gross profit saw a decline of 19.6% y-o-y to $17.8 million for 1HFY2023 from $22.2 million the previous year. Net profit margin decreased to 16.6% in 1HFY2023 as compared to 23.3% in 1HFY2022.
As at end-2022, MMH had $18.0 million in cash and cash equivalents.
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Notwithstanding the market slowdown, MMH has maintained its interim dividend at 6 cents per share (one-tier tax exempt) for 1HFY2023, which will be paid on Feb 17.
MMH CEO Chris Borch says: “At the start of our financial year, we began to see slower market conditions for semiconductors amid softening demand and higher chip inventories especially for personal computers and smart phone applications, which make up a major portion of chip consumption.”
“As cyclicality is typical for the semiconductor industry, we prefer to focus on the industry’s long-term fundamentals and try not to get side-tracked by short-term variations,” he adds.
Shares in MMH closed 1 cent or 0.391% up at $2.57 on Jan 30.
