Micro-Mechanics (Holdings) has reported earnings of $19.8 million for FY2022 ended June, up 9.7% y-o-y. Revenue in the same period was up 11.8% y-o-y to $82.5 million, as the company, maker of precision parts and tools, enjoys stronger demand from its customers in the semiconductor industry.
The earnings, reported on Aug 27, marks its second consecutive year of record revenue and net profit.
Micro-Mechanics enjoyed its highest-ever quarterly results for its 4QFY2022 ended June, with earnings up 22.7% y-o-y to $5.9 million and revenue up 14.8% y-o-y to $22.0 million.
The company plans to pay a final dividend of six cents per share, plus a special dividend of two cents. This brings its total payout for FY2022 to 14 cents.
“Despite facing significant challenges in the aftermath of the Covid-19 pandemic that included staff shortages, inflationary pressures, supply chain shortages and other disruptions, we managed to keep our five worldwide factories running and focused on meeting the needs of customers,” says CEO Chris Borch.
“This operational resilience, amid continued growth of the global semiconductor industry, enabled the group to deliver another year of record revenue and profit in FY2022,” he adds.
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Borch warns that the company, like all other businesses, faces rapidly rising costs for materials, energy and manpower.
Nevertheless, it has maintained its gross margin at 53.4% for FY2022.
“These inflationary pressures are expected to prevail in FY2023 and we plan to continue our relentless focus on working to strengthen our GP margin with initiatives that enhance the value we bring to customers, improve quality and streamline the operations of our factories,” he adds.
Borch notes that with the company’s plants spread across Singapore, Malaysia, China, the Philippines
and the USA, it is in a “strong position” to capitalise on the on-going building boom of chip making plants in Chin and US.
Micro-Mechanics closed at $3.10 on Aug 26, up 0.65%.
