Stock Track | Micro-Mechanics Soars 3.66% Intraday on Strong Earnings and China Growth

Stock Track
Mar 25

Micro-Mechanics (Holdings) Ltd saw its stock price soar 3.66% during intraday trading on Wednesday, driven by positive investor sentiment following the company's strong financial performance and growth prospects in the semiconductor industry.

The precision toolmaker for the semiconductor sector reported its strongest first-half performance since 1HFY2023, with revenue rising 8.7% year-on-year to S$35.4 million and net profit climbing 13.7% to S$6.9 million. The company generated healthy free cash flow of S$8.6 million and maintains a spotless balance sheet with S$27.2 million in cash and zero bank borrowings.

Growth was particularly strong in China, where sales jumped 23.7% as chip manufacturing localization efforts gathered pace. The company's gross margin expanded to 51.3% from 49.1% a year ago. With global semiconductor sales projected to grow 25% to nearly US$1 trillion in 2026, investors are betting on continued tailwinds for Micro-Mechanics' business.

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