Micro-Mechanics (Holdings)

[chialc88]

c.f. page 8 of MMH FY presentation on 30 Aug 2016

Chris decided to focus on semicon industry (for both CMA and tooling).
This is his sweet spot aka low-hanging fruits.

No way he is giving up CMA.

He just need to find a way for the CMA to shine.

Let's gives him a bit more time to prove himself...
   his judgemental call to go into CMA business.



yes, Love you too, MM.






 Love Compassion

[chialc88]

This probably will be my last post on Micro Mechanics.

I spoken to a taxi driver who is actually a renovation contractor.

He says that many contractor prefers to get gov project.

I says got good got bad. Gov like to drag payment.

He says true but they the payment is certain.

I says not really, gov will be fussy, demand this and demand that.

He says true but if do a proper job then the payment is certain.

I says compare to what?

He says other projects. do already nicely touch up still have to pray to get $$$.

---

My only take for MM is to look at it's inventory write-off and customer payment.

So long, these 2 items is ok, just keep MM as pillow stock.

and that's the reason why this likely will be my last post
(until someone wake me up on MM inventory or bad debt...)


zzZ....

 Love Compassion

[cyclone]

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

[ksir]

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.

[punklitez]

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.

[chialc88]

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).

[ksir]

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.

[chialc88]

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

[ksir]

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?

[chialc88]

wow! 
How could I forget!
"There are many reasons why someone sell shares...
  but there is only one reason why they buy a share...
      ....................................................................... to make $$$."

Ok, let's focus on who brought MM, then.
2 things come to my attentions.

Thing 1: MM shareholders:
Link.

Major shareholders # of shares (2013 to 2016)

1. Lam Yen Yong from 2,191,000 to 2,811,000 
   
2. Tan Eng Yam from 2,636,000 to 3,145,300
   
3. Yeo Seng Chong from 750,500 to 1,075,500
   
4. Karl Zurfluh remains at 1,000,500
   
5. Lim Yong Wah from 809,500 to 995,500
   
6. Yeap Lam Yang from 900,000 to 960,000
   
7. Chen Wei Chng remains at 860,000
   
8. Chew Kwai Yoke from 743,000 to 805,000
   

Except Karl Zurfluh and Chen Wei Chng, 
all these major shareholders increased their shares from 2013 to Sept 2016:

• The guys who brought the most share is Lam Yen Yong - increment of 620 lots
  
• The guys who is most aggressive is Yeo Seng Chong - increment of 43%
  

Thing 2: Yeo Seng Chong from Yeomen

First thing first, let's watch a short video:
focus on what's Objectively Matters...




So, focus on Thing 2: 
a) why Mr Yeo brought MM under his personal name and not his fund?
b) what are the attributes of MM that might sparked Mr Yeo into buying aggressively?

Love Compassion