Manufacturing Integration Technology (MIT)

[dydx]

Manufacturing Integration Technology Secures New Orders worth $18M for its Semiconductor Equipment

Manufacturing Integration Technology  announced that it has secured new orders totaling $18m for its state-of-the-art semiconductor equipment since its last update on 22 February 2017. This equipment will be used by its customers to produce devices primarily for the mobile communication and memory sectors.

These latest orders bring our total outstanding order book to $23m, which are expected to be delivered in the next 2 quarters, and to contribute positively to the Group’s financial results for the half year ending 30 June 2017.

Notwithstanding its small size and rather erratic financial performance, can we still say that MIT's semicon equipment products are already world-class?  If so, would the big boys in this sphere be interested to acquire MIT just for its products and potential for faster growth as part of a bigger global player?

[cyclone]

Positive Profit Guidance

Manufacturing Integration Technology Ltd announced that after a preliminary assessment of the unaudited accounts of the Company and its subsidiaries (the "Group") for the half year ended 30 June 2017 (“1H 2017”), the Group has returned to profitability from its loss position in FY 2016. This is in line with the prospect statement in the financial results announcement released on 22 February 2017 whereby the Board had expressed confidence in achieving improved performance in FY 2017. The Group expects sales for 1H 2017 to be in the vicinity of that achieved for the whole of FY 2016.

This significant sales growth and profit turnaround was mainly attributed by the upturn in the global semiconductor industry and impending new mobile handset introductions by industry leaders.

The above guidance is based on a preliminary assessment made by the Company. The Company is in the process of finalising the Group’s unaudited results for 1H 2017 and the final financial results will be announced on or around 4 August 2017.

[dydx]

MIT has requested for a trading halt this morning...
http://infopub.sgx.com/Apps?A=COW_CorpAn...ade618c245

Possibly something positive for the new year?

[dydx]

MIT's shareholders should be pleased with this evening's announcement...
http://infopub.sgx.com/FileOpen/MIT_Anno...eID=484482

A potential cash offer at 13x of FY17's net profit for MIT's semiconductor equipment business appears a good price.

[Debronic]

It's easy to get overly excited with an impending takeover when you are a shareholder but I think one has to exercise extra caution in this case due the following reasons:

1) termsheet is non legally binding, which means both sides can walk away with no penalties.

2) the proposed buyer, China Fortune-Tech Capital Co., Ltd, is the same one that entered into another non-binding termsheet with ASTI to acquire its semiconductor equipment business just 4 months ago before walking away from the deal in Dec last year. They may very well go on to complete this latest one but at least the buyer has already shown that it is not afraid to walk away if negotiations or DD is not satisfactory to them.

ASTI termsheet announcement:
http://infopub.sgx.com/FileOpen/ASTI%20-...eID=471035

[dydx]

MIT's FY17 AR makes a good read..
http://infopub.sgx.com/FileOpen/MIT_AR20...eID=498404

Let see whether MIT can successfully complete the proposed sale of its semiconductor equipment for a good price and in good time, as well as reward shareholders with the sale proceeds.

[dydx]

Finally, MIT has sealed a deal with China's China Fortune-Tech Capital Co Ltd ("CFTC")/SMIC Group to sell its semiconductor equipment business for a cool $84.5m, which is expected to bring in net proceeds of approx. $77.1m (after deducting related taxes and expenses) on completion, and realise a net gain on disposal of approx. $61.8m...
http://infopub.sgx.com/FileOpen/MIT_SPA....eID=516788

Based on MIT's latest (as at 17Jul18) outstanding 230,125,470 issued shares as provided in the announcement, the net proceeds of approx. $77.1m is equivalent to $0.335/share, and the net gain on disposal of approx. $61.8m would add $0.269/share to EPS and raise NAV/share to $0.492 (from $0.223 as at 31Dec17).

[cyclone]

Profit Guidance for 1HFY2018

Manufacturing Integration Technology Ltd provided an update on the Group’s 1HFY2018 financial results.

Based on a preliminary assessment of the Group’s half year performance, the Board advised that the Group is expected to incur a net loss for the half-year ended 30 June 2018. This net loss was attributed to lower semiconductor sales after a banner year in 2017. Contract equipment manufacturing ("CEM") sales were higher but the growth could not make up for the slack in semiconductor sales. Details will be disclosed when the Group reports its 1HFY2018 results on 7 August 2018.

The Company expects revenues for 2HFY2018 to be higher as more equipments are shipped and revenues recognised. The financial performance will be further enhanced if the on-going divestment of the semiconductor equipment business is completed.

[dydx]

Finally, MIT has sold the semiconductor equipment business to a Chinese technology fund for $84.5m...
https://links.sgx.com/FileOpen/MIT_Annou...eID=544271

More info on the business disposal and application of the proceeds...
https://links.sgx.com/FileOpen/Circular_...eID=539200

[Supermonkey]

Finally, MIT has sealed a deal with China's China Fortune-Tech Capital Co Ltd ("CFTC")/SMIC Group to sell its semiconductor equipment business for a cool $84.5m, which is expected to bring in net proceeds of approx. $77.1m (after deducting related taxes and expenses) on completion, and realise a net gain on disposal of approx. $61.8m...
http://infopub.sgx.com/FileOpen/MIT_SPA....eID=516788

Based on MIT's latest (as at 17Jul18) outstanding 230,125,470 issued shares as provided in the announcement, the net proceeds of approx. $77.1m is equivalent to $0.335/share, and the net gain on disposal of approx. $61.8m would add $0.269/share to EPS and raise NAV/share to $0.492 (from $0.223 as at 31Dec17).




Declared initial dividends: 15.5 cents interim dividend. 8.5 cents special dividend upon capital reduction ==> Total 24 cents.

7 cents in Escrow account to be given out in 2 stages.

Total: 31 cents.

If I am not wrong, the final 2 cents should be given out as Final dividend.

Grand total of around 33 cents. Share price at 35.5 cents.. NTA of CEM business left around 13-15 cents and net cash of 8.3 cents ..


http://infopub.sgx.com/FileOpen/Announce...eID=548365