Micro-Mechanics (Holdings)

[ksir]

2015 Q4 was out, here
http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com

Bring the Bads out first:
1. Q4 Tooling Revenue was the weakest compared to Q1-3.
This is a rather big concern to me as generally Q4 & Q1 are seasonally stronger.
It'll be wise to see how 2016Q1 will turn out to be.
Likely to be down on year, will readjust my expectation.
2. After years of calibration & improvement efforts, CMA was still S$1M in the red.
However, noted from the report:
"we completed one of the last phases of our planned S$12 million investment in state-of-the-art equipment to build a 24/7Machining facility at our USA factory".

To be fair, CMA may had contributed positively to the cost reduction & better margin in Tooling's segment due to its 24x7.

The Goods:
1. Final Div of 2c & 1c special div were declared.
That brings the total Div for the year to 5c.
2. Record Full Year Net Profit.
3. Added about S$5M cash, that's after spending S$5M Capex & S$5M Dividend. The Cash machine is well up and humming.
4. As usual, no debt, expansion in 24x7 mainly funded internally or by Vendor.

<vested>

[chialc88]

To be deleted by moderator

[CityFarmer]

Formal dividend policy of the company...

Adoption of Dividend Policy

The Board of Directors of Micro-Mechanics (Holdings) Ltd (“Company”) wishes to announce that the
Company has adopted a dividend policy of paying annual dividends, including interim, of not less than
40% of the consolidated net profit as stated in the audited report, subject to the Group’s retained
earnings, financial position, capital expenditure requirements, future expansion, investment plans, and
other relevant factors.
http://infopub.sgx.com/FileOpen/MMH-Adop...eID=368283

[ksir]

Another strong quarterly result despite semiconductor downturn in recent months:
http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com

Q1 2016 revenue was better than Q4 2015 which's a relieve (at least to me).
In fact it's another record quarter in term of revenue & earning.
Note: Q4 2015 result was rather surprising as it was weakest in FY2015.

On CMA:
"For 1Q16, our subsidiary in the USA, which houses the Group’s CMA division, reported a loss of S$475k including non-cash depreciation expenses of S$343k. As mentioned, we expect to complete the last major phase of our plans to build a state-of-the-art 24/7Machining facility during 2Q16. This shall put us in a position to offer a compelling solution to our CMA customers which will validate the time-consuming, costly and difficult development work done. We are looking forward to shifting our energies to working with customers to engineer more new parts and to growing the CMA division’s top line. For a more detailed discussion on our CMA division, please refer to the heading “CMA Division Update and Review” in Section 8 above."

[cyclone]

A vote of confidence, although a small sum. I reckon this is the highest price paid by a substantial shareholder all-time.

Substantial shareholder (Frederic Louis Borch) on 14 December 2015 bought 14,300 shares @S$ 0.85028 per share via market transaction.

[ksir]

He is CEO's son i think?
He has been buying small shares on & off, but yeah this is the highest ever in fact.
Truth be told, this is also one of the very few companies in my holdings that i ever averaged up along the years.

Although not my top 5 holdings bcos i am rather "cheap", but it ticks most of the Fisher's 15 points "What to buy".

<vested>

[Nick]

Been eyeing this company for a long time. Always waiting for the drop which never seems to come haha!

(Not Vested)

[ksir]

More or less the same, initiated at about S$0.45 in 2013. Waited for another year for the drop which almost never seems to come. Averaged up at about $0.56 in 2014 and then waited again.
This year again avg up at about S$0.65. Too cheapo to accumulate much.

<vested, near core>

[chialc88]

To be deleted by moderator

[punklitez]

some update:
A) FY16 result coming up ...
Valuebuddies do take note that MM is going to release its FY16 result on 29th Aug 2016.
sgx link

B) Share price dip to 0.76
VB also take note that MM dip to 0.76 on 27 & 28th June 2016 due to selling from it's chair-woman.
The announcement was only released on 10th Aug because she was not aware of the sales.
Sumitri Mirnalini Menon sold 195k S$148,278

C) No mention of impairment?
This one I'm not sure what happened?
FY15 recorded a impairment of $3.5m which is a big un-expected item.
However, FY16 Quarterly report is silence on the impairment.
What could be the reason?
I'll be surprise if another million $ impairment is announced.

Anyway, I had probably made THE biggest mistake in stock:



<v>

 Love Compassion

Hi chialc,

You are in love with Micro-Mechanics? How do you think it will perform in the upcoming results announcement?