Micro-Mechanics (Holdings)

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Yesterday, Nicholas Jasinski@Barron wrote an article:
"A Small Stock to Play a Big Rebound in U.S. Manufacturing"
https://www.barrons.com/articles/a-small...1631318400


https://drive.google.com/open?id=1qit48q...37gpQkQizA

When I read the articles, immediately, I relate it to MMH.

One of the key puzzle that valuebuddies kept asking (because it's un-believable), is MMH do not have a (equivalent) competitors.

The fact is MMH do not have any patents/copyrights/IP!
How would it be possible that it could not just survive in China but thriving with more than 50% GPM?

I couldn't help myself when I read the quotation from MEC CEO Robert Kamphuis: 
"We're really an extension of our blue-chip customers, who think of complexity as being our specialty. 
That means there's an awful lot of space, inventory, and machinery investment that our customers don't have to mess around with."

MMH kept talking about their proprietary processes, may be there are really some interesting worth exploring.


Gratitude.

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MMH@321

MMH released it's annual report today and I'm quite surprised that LimTan managed to publish in it's morning brief in records time.

LimTan has a good supporter of MMH.

What I'm very impressed is LimTan analyst managed to sieve out from the 139 pages report and sort of addressing one of our valuebuddies key question/concern:  How could MM managed to hold on to more than 50% GPM, especially operating in a country well known for cut-throat competitions.  How is it possible?  Is it sustainable?

Read here:

https://drive.google.com/open?id=1_suSL9...zny0nSjJJd

Quality wins:


Gratitude.

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MMH@320

A quick glanced at FY2021 top 20 shareholders revealed the identity of the culprit who pushes MMH to $4 -  both Tan (likely sibling if you know how to pronounce their name in dialect).


https://drive.google.com/open?id=1dfG0iW...rVDLTSOkwA

MMH was and likely remains as an illiquid shares.  The rush to $4 allows a lot of valuebuddies to unload their shares (including Don).

As a reference, I extracted the last 1 year MMH price chart and also the last blog on MMH by Don for easy reference. 

Valuebuddies with a bit more time and keen in MMH should check out Don's blogs.  He actually maintained a category for each of the stocks which he blogged, hence, it's a easy and quick read for everything on MMH in one place.  Enjoy: https://illdoitmyself.wordpress.com/cate...icro-mech/



https://drive.google.com/uc?id=1KuC8g-Op...8SfnpMuStp
https://drive.google.com/open?id=1KuC8g-...8SfnpMuStp

Gratitude!

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Good morning, value buddies.
MMH@320

Extracted is the FY2021 Financial Result from MMH's Annual Report.

MMH@320 is not cheap, even when it' was at S$2.0, it's not cheap.  One of the financial blogger blogged that at 75cents, MMH was fully valued.

One thing for sure, those who knows MMH well, is waiting patiently for a right re-entry point.  Those who don't know MMH, is still wondering what's so good about MMH.

Enjoy the journey - you don't need to own MMH to enjoy the learning journey.  Just keep a look out and hopefully learn something important on evaluating a good company along the way.


https://drive.google.com/open?id=1tIEW2e...KHcADlXPrs

Gratitude.

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MMH@321


https://drive.google.com/open?id=1h9N-D0...bylPQCbvk6-

Gratitude!

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MMH@321
The following biz update is from Nanofilm on their China operations.

Take a look and then let's see how MMH handle the same challenges in China.



https://drive.google.com/open?id=1QnTwZ8...yYW0-F-5EK

Gratitude.

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MMH@321
An exceptional interview conducted by Jenifer.T@sgx.com
https://www.sgx.com/research-education/m...tting-edge

Chris shared the key success factor which gives me an idea why MMH could attain more than 50% GPM (even operating in China) - without any IP/Patent/Proprietary technology.

However, the challenges faced by MMH is real.  I sense the anxiety in Chris message and I do hope that Singapore R&D team is able to have some breakthru (before another China competitors).

Finger cross.
Meanwhile, let's enjoy the fruits harvested after so many years of hardworks.

Keep it up MM, keep it up Chris.

Gratitude.



https://drive.google.com/open?id=1S4a7VT...u0Ad7fV74y

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MMH@323
Her World's Woman award 2021 - Jessica@PingAn and Fengru@TurtleTree.
https://www.straitstimes.com/singapore/t...d-magazine


https://drive.google.com/open?id=1-tOffC...qMR-HdsT1p

Before moderator start, let me tell you a story about MMH. 

My story on MMH started in a girly magazine.
I was waiting at the reception of my dentist.
As I love to read books, I just pick up a magazine to read - despite it being a magazine that catered to Singapore woman or those who had a lot of time to gossip.

To my amazement, there was an article about an Ang Mo, leaving America and coming to Singapore (more appropriate Asia) to sell Micro Mechanics parts for chips manufacturing company.  Obviously, the company (MMH) is listed in SGX and that spouted my interest to read more.

Based on my memory, the article was not just 1 or 2 pages snippet but a few pages of writeup.

I could not finish reading and since the article is so interesting (later I share more on why it is interesting to me), I decided to "borrow" the magazine home to read.  Let me clarify, the magazine is not the latest edition, but at least one or two back issues.  I figured out that if I "borrow" home to read, nobody will know and that's exactly what I did.  Now, for the record, after I finished what I wanted to do with the girly magazine, I "return" the magazine to my dentist office in original condition. 

Before I begin, let me highlight that those points that I picked up in the girly magazine, remains the same today.  That simple fact, would had triggered the investigative mind of any valuebuddies that worth their salt.  Are you one of them?

As you would read from Chris interview done by Jenifer.T@SGX.COM, Chris mentioned that he started his workshop with a 30-years-old lathe-machine. This is new to me.  However, I recalled vividly that the girly magazine mentioned that the depreciation for machine/equipment was 10 years. Yet, after fully depreciated, the machine/equipment is still churning around, making good micro-mechanics products.

Let me repeat, a machine which is used for more than 10 years (fully depreciated) is still in use and making good quality products in a Semi Conductor, precision engineering sector.  (added Smiley)

This is interesting to me because Semicon, precision engineering industry is notoriously known for it's high capex business.  The simple fact that MMH defied this high capex rule in Semicon is definitely worth taking a closer look - that was my thought at that time.  I won't elaborate my investigation on how MMH coping with this challenge but the impact for this is MMH could potentially maintain high margin as it does not need to tech refresh it's machine as frequently as other businesses operating in the high tech semincon, precision engineering industry.

Gratitude!

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MMH@320

28 Sep 2021, Dr Tee shared about 5 Semicon stocks.
Watch if you wanted to know about what's so special about Singapore Semincon stocks.

For Micro-Mechanics, just skip to 41min:



https://drive.google.com/open?id=1gcYqoR...1blTz0rSc_
Gratitude.

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MMH@320
Releasing its financial results for the three months ended 30 September 2021 (“1Q22”) on 28 October 2021.
https://links.sgx.com/FileOpen/MMH-Date%...eID=687708

Gratitude.