- Micro-Mechanics (SGX:5DD)’s 3QFY23 (Jan to Mar 2023) revenue came in at S$14.9m which was 13% lower than our 3Q estimates.
Sharper-than-expected decline in revenue due to broad-based industry slowdown.
- - Read this at SGinvestors.io -
- Overall, Micro-Mechanics's 3QFY23 revenue declined by 11% q-o-q and 24% y-o-y which reflected the slowing global semiconductor industry. As a result of slowing sales, capacity utilization shrunk to 50% in 3Q23, down from 55% in 2Q23.
Staying wary of margins.
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- continued inflationary pressures.
- Thus, 3QFY23 EBIT profit margin dropped to 15.7% (versus 16.6% in 2QFY23 and 28.0% in 1QFY23), although 3QFY23 net profit margin remained flattish at ~11% relative to previous quarter.
- Whilst Micro-Mechanics’s 3QFY23 net profit is aligned with our expectations as we had previously assumed higher operating costs, we are wary of continued margin pressures amid the inflationary environment.
Turning more conservative on dividend payouts.
- Read more at SGinvestors.io.
