SINGAPORE (Aug 4): Manufacturing Integration Technology (MIT) returned to profitability in 1H17 ended June with net profit after tax (NPAT) of $2.8 million from a loss of $0.8 million in 1H16.
The stronger bottomline was aided by growth in the test, packaging and assembly segment of the semiconductor market and boosted by new mobile handset introductions by major industry players.
Over the half year, the group achieved revenue of $33.2 million, up 52% from $21.8 million from a year ago.
Gross margins improved to 34% in 1H 2017 from 25% in 1H2016.
MIT attributes sales growth to strong orders for its semiconductor equipment over the half year – while also identifying the successful introduction of a new die sorter during the latter part of the financial year as another growth driver for the period.
Over the period, the group also recorded other gains of $0.7 million from rental income of its industrial property at North Spring Bizhub, Yishun, as well as a gain on disposal of development projects during the period.
Meanwhile, finance costs fell 28.3% to $43 million compared to $60 million a year ago due to the group’s repayment of loans.
Due to a lack of significant capex, cash and cash equivalents increased 28% to $22.98 million as at end June.
After reporting a weak 2H16, the group says it is also seeing improved orders from its contract electronics manufacturers (CEM) customers.
MIT has declared an interim dividend of 0.25 cent per share.
The counter closed flat at 26 cents on Friday.
