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Micro-Mechanics (Holdings) Ltd (SG:5DD)
SGX:5DD
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Micro-Mechanics (Holdings) (5DD) AI Stock Analysis

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SG:5DD

Micro-Mechanics (Holdings)

(SGX:5DD)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
S$2.00
▲(14.94% Upside)
Micro-Mechanics (Holdings) scores well due to its strong financial performance, characterized by robust profitability and cash flow generation. The technical analysis suggests some short-term bearish trends, while the valuation indicates a reasonably priced stock with a solid dividend yield. The absence of earnings call data and corporate events does not impact the score.

Micro-Mechanics (Holdings) (5DD) vs. iShares MSCI Singapore ETF (EWS)

Micro-Mechanics (Holdings) Business Overview & Revenue Model

Company DescriptionMicro-Mechanics (Holdings) Ltd. designs, manufactures, and markets high precision parts and tools used in applications for the wafer-fabrication and assembly processes of the semiconductor industry. It operates through five segments: Singapore, Malaysia, The Philippines, USA, and China. The company offers die attach - pick-up products, such as rubber tips, high-temp plastic tools, tungsten carbide tools, sensor assemblies, and vacuum wand tools; die attach - dispensing products, including dispense nozzle adaptors, dispense nozzles, pen dispense assemblies, writing pen nozzle tips, and epoxy stamping tools; and die attach - die ejection products comprising ejector needles, needle holders/pepper pots, and needle holder seals. It also provides thermosonic bonding products that include clamps and electronic flame off products; ultrasonic bonding products comprising clamps, bearing base assemblies, anvils, and wire cutters; and encapsulation products consisting of BGA dispensing nozzles, dispensing manifolds, pump screws, and O-rings. In addition, the company manufactures precision parts and assemblies on a contract basis for OEMs. Micro-Mechanics (Holdings) Ltd. was founded in 1983 and is based in Singapore.
How the Company Makes MoneyMicro-Mechanics generates revenue primarily through the sale of its precision tools and consumables. The company's revenue model is built on both direct sales and long-term contracts with key customers in the semiconductor sector, which contributes to a steady stream of income. Significant revenue streams include the sale of dicing blades, wafer handling equipment, and custom-engineered solutions. Additionally, Micro-Mechanics benefits from strategic partnerships with major semiconductor companies, which not only bolster its market presence but also provide opportunities for collaboration and co-development of new products. The company's commitment to research and development ensures a continuous pipeline of innovative products that meet the evolving needs of its clients, further enhancing its revenue potential.

Micro-Mechanics (Holdings) Financial Statement Overview

Summary
Micro-Mechanics (Holdings) demonstrates strong financial health with consistent revenue growth, robust profitability margins, a solid balance sheet with minimal leverage, and effective cash flow generation. These factors position the company well for future growth and stability in the semiconductor industry.
Income Statement
Micro-Mechanics (Holdings) shows a strong income statement with consistent revenue growth and robust profitability margins. The TTM data indicates a Gross Profit Margin of 48.80% and a Net Profit Margin of 17.81%, both of which are healthy for the semiconductor industry. The EBIT and EBITDA margins are also strong at 24.05% and 35.23%, respectively. Revenue growth has rebounded to 2.82% after a decline in the previous periods, indicating a positive trajectory.
Balance Sheet
The balance sheet reflects a solid financial position with a low Debt-to-Equity Ratio of 0.02, indicating minimal leverage and financial risk. The Return on Equity (ROE) is impressive at 23.74%, showcasing efficient use of equity to generate profits. The Equity Ratio stands at 80.89%, suggesting a strong equity base relative to total assets, which enhances financial stability.
Cash Flow
Cash flow metrics are robust, with a Free Cash Flow Growth Rate of 6.23% in the TTM period, indicating effective cash generation. The Operating Cash Flow to Net Income Ratio is 2.48, showing strong cash flow relative to net income. The Free Cash Flow to Net Income Ratio is 0.90, reflecting efficient conversion of net income into free cash flow.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue65.21M65.21M57.89M67.02M82.46M73.73M
Gross Profit32.21M32.22M27.19M31.19M44.04M40.02M
EBITDA22.66M22.62M18.23M20.33M32.24M29.72M
Net Income12.40M12.40M8.04M9.77M19.81M18.06M
Balance Sheet
Total Assets60.84M60.84M56.86M58.19M73.69M72.33M
Cash, Cash Equivalents and Short-Term Investments23.28M23.28M16.57M14.27M20.37M20.61M
Total Debt2.06M2.06M1.77M2.20M1.61M2.49M
Total Liabilities11.63M11.63M10.79M11.75M15.39M14.36M
Stockholders Equity49.21M49.21M46.07M46.44M58.30M57.97M
Cash Flow
Free Cash Flow16.88M16.83M12.12M14.36M20.32M18.92M
Operating Cash Flow18.33M18.28M14.58M17.70M25.22M25.70M
Investing Cash Flow-1.49M-1.23M-2.25M-2.42M-4.52M-6.72M
Financing Cash Flow-9.85M-9.90M-9.93M-20.78M-20.75M-19.30M

Micro-Mechanics (Holdings) Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.74
Price Trends
50DMA
1.80
Negative
100DMA
1.74
Negative
200DMA
1.68
Positive
Market Momentum
MACD
-0.02
Positive
RSI
40.48
Neutral
STOCH
30.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:5DD, the sentiment is Negative. The current price of 1.74 is below the 20-day moving average (MA) of 1.78, below the 50-day MA of 1.80, and above the 200-day MA of 1.68, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.48 is Neutral, neither overbought nor oversold. The STOCH value of 30.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:5DD.

Micro-Mechanics (Holdings) Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$237.74M19.1725.77%3.45%12.65%54.33%
68
Neutral
$944.13M22.749.87%3.27%0.96%-20.30%
65
Neutral
S$535.87M39.312.87%4.60%
64
Neutral
S$317.24M32.587.60%0.32%47.45%51.05%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
54
Neutral
S$423.62M32.503.50%0.96%22.66%83.49%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SG:5DD
Micro-Mechanics (Holdings)
1.74
0.15
9.23%
SG:558
UMS Holdings
1.39
0.38
38.17%
SG:AWX
AEM Holdings Ltd.
1.78
0.44
32.84%
SG:BVQ
Procurri Corporation Limited
0.32
0.10
45.45%
SG:JLB
Grand Venture Technology Limited
0.94
0.39
70.91%
SG:MZH
Nanofilm Technologies International Ltd.
0.68
-0.14
-17.07%

Micro-Mechanics (Holdings) Corporate Events

Micro-Mechanics Honored for Excellence in Corporate Governance and Investor Relations
Sep 1, 2025

Micro-Mechanics has been awarded the Gold Award for Best Investor Relations at the Singapore Corporate Awards 2025, marking its third Gold and ninth overall recognition in this category. The company also maintained its top 30 ranking in the Singapore Governance and Transparency Index, highlighting its dedication to strong governance and transparency, which are integral to delivering sustainable long-term value for stakeholders.

The most recent analyst rating on (SG:5DD) stock is a Hold with a S$2.00 price target. To see the full list of analyst forecasts on Micro-Mechanics (Holdings) stock, see the SG:5DD Stock Forecast page.

Micro-Mechanics Reports Strong FY2025 Financial Performance
Aug 29, 2025

Micro-Mechanics (Holdings) Ltd is a Singapore-based company involved in the manufacturing of precision tools and components, primarily serving the semiconductor industry. The company is publicly traded on the Singapore Exchange.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 14, 2025