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Micro-Mechanics (Holdings)
26-08-2016, 10:54 PM,
Post: #31
Rainbow  RE: Micro-Mechanics (Holdings)
yes, I am.
In fact, after read your initiation report, I think more analysts and Valuebuddies will be keen in MM.

So, despite the few hickup/lapse, I had quickly decided to up my stake by another 100%.
... at ridiculous price which reflects my love...

THE reason which you had asked coincidentally in your post:
I'm expecting MM to complete it's transformation and morph into butterfly soon.
... not this Q, then definitely next.

Tongue


[Image: 260816%20MM%20Custom%20Manufacturing.jpg]

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感恩

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26-08-2016, 11:39 PM, (This post was last modified: 26-08-2016, 11:39 PM by ksir.)
Post: #32
Micro-Mechanics (Holdings)
I don't expect the result to be good, let aside fantastic.
I hope semiconductor tooling can maintain its good result (or not substantially lower).
CMA on other hand I expect it to be still performing under potential.
Will be glad to just see the cma orders picking up and reaching the better economic of scale.

<vested>
My views are your Gilbert & Sullivan's:
"The flowers that bloom in the spring, have nothing to do with the case".

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27-08-2016, 11:42 PM,
Post: #33
RE: Micro-Mechanics (Holdings)
ksir,

I'm very optimistic about MM:
#1. c.f. http://infopub.sgx.com/FileOpen/Micro%20...eID=370954
page 2 of last year  FY15 annual report [extract]:

During the year, we completed one of the last phases of our planned S$12 million investment in state-of-the-art equipment
to build a 24/7 Machining facility at the USA factory. 
Although we intend to invest an additional S$0.6 million for equipment in FY2016, 
we have completed most of the difficult and challenging engineering work during the last four years. 
Going forward, our team in the USA is focused on 
developing innovative and cost-effective processes for new parts,
 growing CMA revenue and 
meeting the needs of our customers in the aerospace, semiconductor, medical and laser industries for
 “Perfect Parts, On Time, Every Time” 
based on repeatable, scalable and cost-effective processes.

Re-phase by LC: 
FY15, CMA had completed last phases of work. 
CMA will focus on growing revenue (increase customers)


#2. c.f. http://infopub.sgx.com/FileOpen/MMH-SGXn...eID=401589
Zooming into CMA Q2 vs Q3 result:
page 9: Revenue jump from 1.4m to 2.2m (+50%)
page 10: Capacity Utilisation jump from 23% to 35% (+50%)
page 10: GPM jump from 6.7% to 27.5% (+300%)

Re-phase by LC: MM=Money come, Money come

<vested - 950,500 Yeo Seng Chong>

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感恩

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27-08-2016, 11:55 PM,
Post: #34
Micro-Mechanics (Holdings)
In general, most unpleasant experiences come with over-expectation. I certainly hope this is not the case. In any case, i read the same Annual Report and not overly impressed! For what it is worth, have presented my negative and positive views in previous post.
My views are your Gilbert & Sullivan's:
"The flowers that bloom in the spring, have nothing to do with the case".

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28-08-2016, 01:28 PM,
Post: #35
RE: Micro-Mechanics (Holdings)
(27-08-2016, 11:42 PM)chialc88 Wrote: ksir,

I'm very optimistic about MM:
#1. c.f. http://infopub.sgx.com/FileOpen/Micro%20...eID=370954
page 2 of last year  FY15 annual report [extract]:

During the year, we completed one of the last phases of our planned S$12 million investment in state-of-the-art equipment
to build a 24/7 Machining facility at the USA factory. 
Although we intend to invest an additional S$0.6 million for equipment in FY2016, 
we have completed most of the difficult and challenging engineering work during the last four years. 
Going forward, our team in the USA is focused on 
developing innovative and cost-effective processes for new parts,
 growing CMA revenue and 
meeting the needs of our customers in the aerospace, semiconductor, medical and laser industries for
 “Perfect Parts, On Time, Every Time” 
based on repeatable, scalable and cost-effective processes.

Re-phase by LC: 
FY15, CMA had completed last phases of work. 
CMA will focus on growing revenue (increase customers)


#2. c.f. http://infopub.sgx.com/FileOpen/MMH-SGXn...eID=401589
Zooming into CMA Q2 vs Q3 result:
page 9: Revenue jump from 1.4m to 2.2m (+50%)
page 10: Capacity Utilisation jump from 23% to 35% (+50%)
page 10: GPM jump from 6.7% to 27.5% (+300%)

Re-phase by LC: MM=Money come, Money come

<vested - 950,500 Yeo Seng Chong>

Heart Love Compassion

chialc88,

Base on the segment report, the USA always has negative result whereas the assets value has increase over the years. 

CMA profitability still a question mark. Hope that MM bet is correct. 

Note from Executive Management Report FY2015:

"The Group’s subsidiary in the USA, which houses our Custom Machining & Assembly (“CMA”) division, reported a loss of S$1.05 million (including non-cash depreciation expenses of S$1.3 million) in FY2015. The Group also recorded an impairment allowance of S$3.5 million on monies owed by our USA subsidiary to the Company at the end of FY2015. Although this allowance is an internal provision and does not impact the Group’s bottom line, it is nonetheless cause for concern and serves to intensify our focus on improving our USA subsidiary’s performance.

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29-08-2016, 07:23 PM,
Post: #36
RE: Micro-Mechanics (Holdings)
Micro-Mechanics Posts Stable Net Profit of S$11.9 Million in FY2016; To Pay Higher Dividends
* Higher productivity and operational efficiencies lift GP margin to 56.9% in FY2016.
* Sound balance sheet – Cash of S$20.1 million and zero debt.
* Proposes final dividend of 3 cents per share and special dividend of 1 cent per share.
* Total dividends of 6 cents per share in FY2016, up from 5 cents per share in FY2015. This translates to a payout ratio of 70%.
* Including this final dividend, the Group would have distributed a total of 45.9 cents per share to shareholders since its public listing in 2003.

http://infopub.sgx.com/FileOpen/MMH-SGXn...eID=419297
Specuvestor: Asset - Business - Structure.

http://www.valuebuddies.com
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29-08-2016, 09:07 PM, (This post was last modified: 29-08-2016, 09:10 PM by ksir.)
Post: #37
Micro-Mechanics (Holdings)
Finally, it is the reckoning time for CMA. They decided to end operating CMA as separate Business unit. Finally narrow down the too-ambitious and yet-overhyped CMA multi segments back to the core semiconductor industry. If I read correctly, they will focus on semiconductor co's capex instead of only the toolings (opex).

To me, it is always not easy to acknowledge that "your baby" is not that Blue Sky after all. It must be with bitter taste to finally cap it down.

In hindsight (everyone is expert), perhaps it was far more effective to focus CMA in semiconductor industry from the start then expand to other segments when learning curve is crossed! Alas, to quote from Howard Marks' "if you don't get what you want, what you got is experience".

<vested, happy with the dividend and satisfactory returns>
My views are your Gilbert & Sullivan's:
"The flowers that bloom in the spring, have nothing to do with the case".

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30-08-2016, 08:58 AM,
Post: #38
RE: Micro-Mechanics (Holdings)
(29-08-2016, 09:07 PM)ksir Wrote: In hindsight (everyone is expert), perhaps it was far more effective to focus CMA in semiconductor industry from the start then expand to other segments when learning curve is crossed! Alas, to quote from Howard Marks' "if you don't get what you want, what you got is experience".

<vested, happy with the dividend and satisfactory returns>

I like the Howard Marks's statement too.  Big Grin

(not vested, but one of the interesting stocks in my monitoring list, and a fan of Mr. Howard Marks)
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡

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30-08-2016, 04:41 PM,
Post: #39
RE: Micro-Mechanics (Holdings)
(29-08-2016, 09:07 PM)ksir Wrote: Finally, it is the reckoning time for CMA. They decided to end operating CMA as separate Business unit. Finally narrow down the too-ambitious and yet-overhyped CMA multi segments back to the core semiconductor industry. If I read correctly, they will focus on semiconductor co's capex instead of only the toolings (opex).

To me, it is always not easy to acknowledge that "your baby" is not that Blue Sky after all. It must be with bitter taste to finally cap it down.

In hindsight (everyone is expert), perhaps it was far more effective to focus CMA in semiconductor industry from the start then expand to other segments when learning curve is crossed! Alas, to quote from Howard Marks' "if you don't get what you want, what you got is experience".

<vested, happy with the dividend and satisfactory returns>

CMA line is in US and suppose to serve US customers.

Now that MM wants to deploy CMA to serve semiconductor customers, it means CMA will be transfer to Asia? 

MM business model is customization, CMA line is too expansive for semiconductor tooling. Moreover, MM machine ultilization rate is only ~55%. 

IMO, MM should continue to expand their business into Aviation and medical industries. They don't really need high sophisticated machines to product these products.

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30-08-2016, 05:06 PM,
Post: #40
Micro-Mechanics (Holdings)
Just thinking out loud, since CMA is focusing only big items and instead of adjusting the machines for different purposes, why don't just focus on semiconductor clients? Lets say find a few big ones and serve them? Of cos margin will not be high, but CMA is making loss year in and year out to begin with.
My views are your Gilbert & Sullivan's:
"The flowers that bloom in the spring, have nothing to do with the case".

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