Micro-Mechanics (Holdings)

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Micro-Mechanics Posts Net Profit of S$3.4 Million in 1Q17
• Net profit in 1Q17 grew 19.4% from 4Q16, but was slightly down from S$3.6 million in 1Q16
• Gross profit margin maintained at healthy 57.3% in 1Q17
• Strong financial position with cash of S$23.7 million and zero borrowings

CEO of Micro-Mechanics, Mr Chris Borch said, “The Group’s revenue in 1Q17 softened marginally from the same quarter a year ago due to slower demand conditions in the global chip industry, as well as the translational impact from the depreciation of the Reminbi, Philippine Peso and US Dollar when translated to our reporting currency in Singapore Dollars.”

1Q17 results : http://infopub.sgx.com/FileOpen/MMH-SGXn...eID=426644

By design, according to CFO, AGM is also held today at National Lib.
Great that they do not waste money in conducting at luxury hotel.
Key take-aways from the AGM are:
Note: based on my interpretation of mainly what were said by CEO & occasionally COO & CFO. Any incorrect interpretations are solely my fallibility.
1. CMA will be focusing on Semiconductor wafer-fab industry.
Previously we only produce Part & Tool for Assembly & Testing Companies.
But CMA will be focusing to produce Part & Tool for Wafer-fabrication Companies.

Wafer-fab is a big market (I think he mean much bigger market).
MMH have been making inroads for this new focus and looks encouraging.

The issue with MMH is the Top-Line.
MMH is good in keeping cost intact hence the issue is we need more Revenue.
A good way to watch MMH is the Top line & Middle line (Gross Margin).

2. Industry is moving towards 10nano or smaller.
Our competitors who have been successfully in the past, may not have the ability to adjust or adjust quick enough to seize the opportunity.
We have reset/retool and will keep improving for this trend.

3. Capex for FY2017 is expected to be S$6-8M.
I am not sure if this is meant for CMA's new focus, but i bet partly is.

4. Commenting on the eager shareholder (who obviously want to hit and run) about the lack of big fund investors in MMH, CFO firmly said that they do not wish to jack up the price and having the big players may not be good for small OPMI.
CEO added that they would like to leave the market to price the Company and focus on company businesses.
I personally really appreciate such stands by the Management which are generally under-appreciated by Shareholders.

I guess i am in good companies.

(28-10-2016, 07:01 PM)Hi Ksir,Thanks for the update. I was overseas so I couldn\t attend the AGM.This is the stock that i have   held the longest and you can read my report here. https://heartlandboy.com/micro-mechanics...ed/Equally vested and satisfied as well. Wrote: By design, according to CFO, AGM is also held today at National Lib.
Great that they do not waste money in conducting at luxury hotel.
Key take-aways from the AGM are:
Note: based on my interpretation of mainly what were said by CEO & occasionally COO & CFO. Any incorrect interpretations are solely my fallibility.
1. CMA will be focusing on Semiconductor wafer-fab industry.
Previously we only produce Part & Tool for Assembly & Testing Companies.
But CMA will be focusing to produce  Part & Tool for Wafer-fabrication Companies.

Wafer-fab is a big market (I think he mean much bigger market).
MMH have been making inroads for this new focus and looks encouraging.

The issue with MMH is the Top-Line.
MMH is good in keeping cost intact hence the issue is we need more Revenue.
A good way to watch MMH is the Top line & Middle line (Gross Margin).

2. Industry is moving towards 10nano or smaller.
Our competitors who have been successfully in the past, may not have the ability to adjust or adjust quick enough to seize the opportunity.
We have reset/retool and will keep improving for this trend.

3. Capex for FY2017 is expected to be S$6-8M.
I am not sure if this is meant for CMA's new focus, but i bet partly is.

4. Commenting on the eager shareholder (who obviously want to hit and run) about the lack of big fund investors in MMH, CFO firmly said that they do not wish to jack up the price and having the big players may not be good for small OPMI.
CEO added that they would like to leave the market to price the Company and focus on company businesses.
I personally really appreciate such stands by the Management which are generally under-appreciated by Shareholders.

I guess i am in good companies.

Happy Chinese New Year, Value Buddies.

2Q17 Result will be out on 6th Feb.

Love Compassion

---

"Day One" of his presidency by meeting with business leaders in the White House




What will be the impact to MM:
1. CMA biz in America
2. Tooling biz in the rest of the world?

thinking, thinking, thinking...
why the chap UOBKH kept selling his MM shares?
did he knows something that we don't know?

don't care.  happily to take over his shares (and dividends).

(29-01-2017, 03:12 PM)chialc88 Wrote: Happy Chinese New Year, Value Buddies.

2Q17 Result will be out on 6th Feb.

Love Compassion

---

"Day One" of his presidency by meeting with business leaders in the White House




What will be the impact to MM:
1. CMA biz in America
2. Tooling biz in the rest of the world?

thinking, thinking, thinking...
why the chap UOBKH kept selling his MM shares?
did he knows something that we don't know?

don't care.  happily to take over his shares (and dividends).

I thought there is no more CMA unit at the moment.

To be deleted by moderator

(29-01-2017, 05:52 PM)chialc88 Wrote: Dear KSir,
Extracts from Oct 2016 National Library meeting minutes:

a separate CMA division to serve multiple industries such as aerospace, semiconductor, laser and other high-technology industries was challenging. He explained that it had been difficult as a lot of resources and efforts were needed to serve the different industries. After evaluation, it was decided late last year to align the CMA division with the Group’s core business and focus exclusively on producing parts and tools for the semiconductor industry. There would be no change in the machines and systems in place at the USA plant which will continue to be utilised. 

---

I still wondering why the chaps at UOBKH is selling MM so aggressively?

What did he knows that we don't?

Anyway we should expects some good dividends coming next month.

Love Compassion

I wonder why bother? Everyday tons of ppl trading, why not asking why they sell as well?

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