Micro-Mechanics FY2025 Results: Revenue Up 12.6%, 6.0 Cents Dividend, Over 3,000% TSR Since Listing 1624

Micro-Mechanics (Holdings) Ltd FY2025 Financial Analysis: Sustained Growth and Operational Excellence

Micro-Mechanics (Holdings) Ltd, a SGX-listed supplier of high-precision tools and parts for semiconductor wafer-fabrication and assembly, has released its FY2025 results. The company demonstrated resilient financial performance, operational progress, and a positive outlook, underpinned by its Five-Star Factory initiative and disciplined capital management.

Key Financial Metrics and Performance Review

Metric	FY2025 (Current Year)	Q4 FY2025 (Current Qtr)	Q3 FY2025 (Prev Qtr)	FY2024 (Prev Year)	YoY Change	QoQ Change
Revenue (S\$ m)	65.2	16.7	16.0	57.9	+12.6%	+4.7%
EBITDA (S\$ m)	22.7	5.8	5.7	18.4	+23.8%	+1.8%
EBITDA Margin (%)	34.9%	34.9%	31.7%	31.8%	+3.2 ppt	+3.2 ppt
Net Profit (S\$ m)	12.4	N/A	N/A	N/A	N/A	N/A
Return on Equity (%)	25.2	N/A	N/A	N/A	N/A	N/A
Dividend per Share (cents)	6.0	N/A	N/A	6.0	0%	N/A
Dividend Payout Ratio (%)	67.3	N/A	N/A	N/A	N/A	N/A
Cash & Bank Balances (S\$ m)	23.3	N/A	N/A	16.6	+40.4%	N/A
Net Asset Value per Share (cents)	35.4	N/A	N/A	33.14	+6.8%	N/A

Historical Performance Trends

The company has maintained a solid track record of growth and shareholder returns since its listing in 2003. The cumulative dividend per share stands at 134.9 cents, representing over 700% returns for shareholders. The total shareholder return (TSR) since listing exceeds 3,000%, far outperforming local and global indices. Dividend payments have been consistent, with the latest payout ratio at 67.3% for FY2025.

Operational and Strategic Highlights

Revenue Diversification: Micro-Mechanics serves over 600 customers globally across the semiconductor value chain, with a diversified footprint in the USA, Singapore, Malaysia, China, and the Philippines.
Geographical Revenue Mix: FY2025 revenue was well-diversified, with China (31.28%), USA (22.36%), Malaysia (18.61%), Singapore (8.78%), and Taiwan (6.06%) among top contributors.
Profitability and Cost Control: The US subsidiary (MMUS) achieved its first full year of profitability, validating restructuring efforts. Group-wide cost reduction measures contributed to improved EBITDA margins, with operating expenses declining and inventory overstocking minimized.
Five-Star Factory Initiative: The company continued to strengthen its five pillars: Innovation Excellence, High Performance Teams, Workplace Efficiency & Safety, Fast, Effective & Local Customer Support, and Operational Excellence.

Dividend History and Shareholder Returns

Year	Total Dividend per Share (cents)	Cumulative Dividend (cents)
FY2024	6.0	128.9
FY2025	6.0	134.9

Errors and Inconsistencies

The report disclosed a formula error in Malaysia’s sales figures for the previous quarter, which has been corrected in the FY2025 results.

Chairman’s Statement

“Continuing to strengthen the five pillars of excellence to achieve sustained success. The initiative has enabled the Group to apply its expertise in packaging to the front-end WFE sector, allowing the Group to become a Next-Generation Supplier serving at the intersections of both the consumable tools and WFE segments.”

Tone: Positive and forward-looking, emphasizing operational excellence and strategic positioning for future growth.

Directors’ Remuneration

Kyle Borch was appointed CEO effective July 1, while Chris Borch continues as Executive Chairman.
The Group onboarded its first Vice President of Human Resources to oversee and develop training programs, strengthening foundations for high performance teams.
Staff remuneration, including bonus programs, is aligned with Group KPIs and profitability.

Exceptional Items and Corporate Actions

Restructuring: The MMUS subsidiary restructuring eliminated S\$1.3m in annual operating costs and achieved full-year profitability.
Shareholder Returns: No share buybacks, dilution, or placements were noted. Steady dividend payments and zero borrowings demonstrate financial discipline.
Asset Management: Inventory write-offs have decreased year-over-year, and inventory levels have been kept lean relative to annualized sales.

Outlook and Strategic Priorities

The semiconductor industry is forecasted to grow with worldwide revenue expected to reach US\$728b in 2025 and US\$800b in 2026. Micro-Mechanics aims to maintain MMUS’s profitability, advance its Five-Star Factory initiative, and uphold disciplined capital management and governance standards.

Continued restructuring to reduce costs and sharpen engineering focus in the higher-value WFE segment.
Strategic capex investments to enhance manufacturing capabilities and productivity.
Commitment to transparency, governance, and investor relations, ranking 30th out of 467 Singapore-listed companies in the 2025 Governance and Transparency Index.

Conclusion and Investment Recommendations

Overall Financial Performance and Outlook: Micro-Mechanics delivered a strong set of results in FY2025, marked by solid revenue growth, improved margins, enhanced operational efficiency, and robust cash generation. The outlook remains positive, supported by industry tailwinds, operational resilience, and disciplined capital management.

Investor Recommendations

If you currently hold Micro-Mechanics stock: The company’s financial and strategic momentum, consistent dividends, and positive industry outlook suggest it is prudent to continue holding the stock. The disciplined approach to cost control, zero borrowings, and sustained profitability provide a buffer against volatility.
If you do not currently hold Micro-Mechanics stock: Investors seeking exposure to high-quality earnings, strong governance, and the semiconductor sector’s growth may consider initiating a position, especially given the company’s resilience and long-term track record of shareholder returns.

Disclaimer: This analysis is based solely on the information provided in Micro-Mechanics’ FY2025 results presentation. It does not constitute investment advice. Investors should consider their own risk profile and consult with a financial advisor before making any investment decisions.