Manufacturing Integration Technology (MIT)

[greengiraffe]

Business is v tough... after going thru a bad patch last few years and finally turning around, owner oso want to cash out on the high...

1H result just out.....
http://infopub.sgx.com/FileOpen/MIT%20An...eID=363618 [result announcement]
http://infopub.sgx.com/FileOpen/Press%20...eID=363619 [press release]

The rapid growth in both revenue and profitability are simply amazing, and MIT has declared a $0.005/share "SG50" special dividend!

Latest (as at 5Aug15) orders book stood at $50.9m - with delivery of most of the orders to be made within the next 6 months - is pointing towards the likelihood of similarly strong results in 2H.

After reading the para under "Looking Forward" in the press release, I get a feeling that MIT could be alluding that the company could become an acquisition target.

[dydx]

I agree the business carries more than fair technological and cyclical market risks, but I thought we should also recognise that MIT now has 2 strong legs - Semiconductor and Solar - which are both well-established and getting stronger, over 20 years of operating history and R&D, quality/proven products, brand-name, an established customer base and diversified markets, patents, and a grow cash reserve and war chest. All these make MIT quite valuable to the right suitors.

[greengiraffe]

Solar will eclipse following the sudden collapse in oil prices.

Its semiconductor business remains cyclical like other technology businesses.

Perhaps the strengthening US$ has gave many tech companies some breathing space as seen from sector wide earnings surprises.

I agree the business carries more than fair technological and cyclical market risks, but I thought we should also recognise that MIT now has 2 strong legs - Semiconductor and Solar - which are both well-established and getting stronger, over 20 years of operating history and R&D, quality/proven products, brand-name, an established customer base and diversified markets, patents, and a grow cash reserve and war chest. All these make MIT quite valuable to the right suitors.

[Stephentoh]

Although this might be a little backdate in May

http://sias.org.sg/files/SGXMarketUpdate...s-YTD.html

MIT have outperform its peers in the semicon industry (Local), supported by healthy orders and optimistic management.

[Dosser]

Good end of year results:

http://infopub.sgx.com/FileOpen/MIT%20An...eID=391494

Per share profit increased 49% from 4.68c to 6.97c (6.79c fully diluted)

0.5c final dividend.

Management has used most of the profit to massively reduce liabilities.

Some issues with respect to solar customer, due to their suspension from HK stock exchange

[BlueKelah]

Good end of year results:

http://infopub.sgx.com/FileOpen/MIT%20An...eID=391494

Per share profit increased 49% from 4.68c to 6.97c (6.79c fully diluted)

0.5c final dividend.

Management has used most of the profit to massively reduce liabilities.

Some issues with respect to solar customer, due to their suspension from HK stock exchange

it seems like solar is still a very speculative sector much like some of the tech sector.

Some defaults in the industry the past few years that came up in my google.

http://www.bloomberg.com/news/articles/2...r-industry
http://www.bloomberg.com/news/articles/2...d-wsj-says
http://www.bloomberg.com/news/articles/2...lar-sector

[frankblack]

What's happening this morning? Someone shorting to collect? Big price fall after ok results.

[theasiareport]

I have a strong suspicion that one of their big solar customers is none other than Hanergy. You can read about the scandal and saga unfolding - reminiscent of the S-Chips saga in Singapore.

[BlueKelah]

I have a strong suspicion that one of their big solar customers is none other than Hanergy. You can read about the scandal and saga unfolding - reminiscent of the S-Chips saga in Singapore.

haha i was just going to mention hanergy, IIRC they were suspended last year on HKSE. So could be hanergy  or some other solar company going kaput. If really hanergy, then a big impairment should be coming for MIT.

very high selling volume today though so it is likely some announcement will be made to SGX after hours...

-nv-

[yeokiwi]

Provisions have already been made. I suppose the main impact is the EPS for FY16

http://infopub.sgx.com/FileOpen/MIT%20An...eID=391494


Concurrently, net profit after tax rose 52% to a record S$15.43m in FY2015, compared with
net profit of S$10.17m in FY2014. This was achieved through the significantly higher
revenues as well as higher gross profit margins, which rose to 41% in FY2015 from 31% in
FY2014. This higher gross profit margins were contributed by solar and certain semiconductor
equipment.
Our net profit would have been higher if not for the following provisions made for our solar
business:
• Allowance for impairment on trade receivables (S$2.34m)
• Inventories written down (S$1.09m)
• Others (S$0.52m)
These provisions have been made for prudential reasons as our solar customer had
encountered some issues related to their suspension of share trading in Hong Kong. In the
same vein, we have also taken out an outstanding S$21m solar order (as announced on 11
May 2015) from our order book as we have not received the necessary down-payment.