Micro-Mechanics (5DD) H1 2025 earnings summary

Executive summary

• Achieved strong revenue growth in 2QFY2025, up 20.7% year-over-year to S$16.3 million, and 1HFY2025 revenue rose 10.8% to S$32.5 million.

• Net profit for 2QFY2025 surged 108.9% year-over-year to S$2.95 million, with continued profitability at the USA subsidiary (MMUS) following restructuring.

• Advanced 'Five-Star Factory' initiative, improving efficiency and operational excellence across the group.

• Increased demand for consumable tools amid global supply chain uncertainties, especially from local customers.

• Interim dividend of 3.0 cents per share declared for 1HFY2025, with a payout ratio of 69.2%.

Financial highlights

• Group revenue for 1HFY2025 rose 10.8% year-over-year to S$32.5m; 2QFY2025 revenue up 20.7% year-over-year to S$16.3m.

• Net profit for 1HFY2025 increased 17.2% year-over-year to S$6.0m; 2QFY2025 net profit was S$2.95m, up 108.9% year-over-year.

• Gross profit for 2QFY2025 increased 24.7% year-over-year to S$7.7m, with gross margin at 47.5%.

• Cash and bank balances at S$20.2m as of 2QFY2025, with no borrowings; net cash from operations S$9.6m for 1HFY2025.

• Earnings per share for 2QFY2025 was 2.12 cents, up from 1.02 cents a year ago.

Outlook and guidance

• Targeting leadership as a next-generation supplier of high-precision tools and parts for semiconductor manufacturing.

• Focus on sustaining MMUS profitability, cost reduction, and product mix optimization in WFE sector.

• Cautiously optimistic about continued semiconductor industry recovery, with WSTS forecasting 11.2% global sales growth in 2025.

• Continuing disciplined capital management, maintaining zero bank borrowings and steady dividends.

• Emphasis on building core business foundations for sustainable, high-quality earnings and long-term growth.