Manufacturing Integration Technology (M11) H1 2024 earnings summary

Executive summary

• 1H 2024 revenue fell 48% YoY to S$2.769m as orders declined in both build-to-print and customised automation; net loss widened to S$1.731m from S$1.310m.

• Operations remained at the 2H 2023 pace, with no significant sales-growth improvement; management is positioning for a market upturn through Penang manufacturing capacity and customer development.

Financial highlights

• Revenue was S$2.769m, down 48% YoY; gross profit was S$120k versus S$127k, with gross margin improving to 4% from 2%.

• Other income and gains decreased to S$492k from S$654k, mainly because the prior-year period included a S$190k gain on equipment disposal; 1H 2024 included S$342k rental income.

• Administrative expenses increased 12% to S$2.132m, primarily from incremental business-development spending; finance costs rose to S$55k from S$33k as borrowings increased.

• Net loss was S$1.731m versus S$1.310m; total comprehensive loss was S$1.764m versus S$1.241m, and basic and diluted loss per share was 0.72 cents versus 0.54 cents.

Outlook and guidance

• Penang is operational and can manufacture and ship full turnkey manufacturing systems; Singapore will lead business development and technology development.

• Management is pursuing repeat orders after equipment validation and developing new strategic customers; it is also exploring strategic alliances and other ways to add customer value.

• The 1H 2024 performance was in line with the profit guidance announcement issued on 31 July 2024.