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

Micro-Mechanics (Holdings) (5DD) AI Stock Analysis

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SG

Micro-Mechanics (Holdings)

(SGX:5DD)

Rating:74Outperform
Price Target:
S$2.00
▲(24.22%Upside)
Micro-Mechanics (Holdings) scores well due to its strong financial performance, highlighted by robust profitability margins and efficient cash management. The stock's technical indicators suggest mild bullish momentum, although the negative MACD is a point of caution. Valuation appears fair with a significant dividend yield, though this may reflect limited growth prospects.

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 (Holdings) generates revenue through the sale of its high-precision tools and components, primarily to customers in the semiconductor industry. The company designs and manufactures these products to meet the exacting standards required for semiconductor fabrication and other high-tech applications. Revenue streams include direct sales to end-users, as well as contracts with semiconductor manufacturing companies, which require a steady supply of precision parts and tools for their operations. The company's earnings are bolstered by its strategic global presence, allowing it to serve key markets efficiently. Additionally, Micro-Mechanics may engage in partnerships or collaborations with leading tech companies to enhance its product offerings and expand its market reach, though specific partnerships are not detailed.

Micro-Mechanics (Holdings) Financial Statement Overview

Summary
Micro-Mechanics (Holdings) demonstrates strong financial health with solid profitability margins, minimal leverage, and robust cash flows. While revenue has declined recently, the company's efficient operations and strong balance sheet provide a stable foundation.
Income Statement
75
Positive
The income statement reveals a strong gross profit margin of 48.8% and a healthy net profit margin of 17.8% for TTM, indicating effective cost management. However, the revenue growth rate is negative at -6.1%, reflecting a decline in sales from the previous period, which could be concerning if the trend continues. The EBIT margin stands at 26.6% and the EBITDA margin at 35.2%, both showcasing solid operational efficiency.
Balance Sheet
85
Very Positive
The balance sheet is robust with a low debt-to-equity ratio of 0.02, suggesting minimal leverage and financial stability. Return on equity (ROE) is healthy at 24.0%, indicating effective use of shareholder funds to generate profits. The equity ratio is strong at 83.2%, reflecting a high proportion of assets financed by equity, which minimizes financial risk.
Cash Flow
80
Positive
Cash flow analysis shows a significant free cash flow growth rate of 31.1%, highlighting the company's ability to generate cash effectively. The operating cash flow to net income ratio is at 1.56, indicating strong cash conversion. The free cash flow to net income ratio of 1.41 further supports the company's efficient cash management and profitability.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue63.42M57.89M67.02M82.46M73.73M64.21M
Gross Profit30.95M27.19M31.19M44.04M40.02M34.31M
EBITDA22.34M18.23M20.33M32.24M29.72M25.19M
Net Income11.30M8.04M9.77M19.81M18.06M14.65M
Balance Sheet
Total Assets56.55M56.86M58.19M73.69M72.33M71.15M
Cash, Cash Equivalents and Short-Term Investments19.23M16.57M14.27M20.37M20.61M20.81M
Total Debt984.75K1.77M2.20M1.61M2.49M1.98M
Total Liabilities9.51M10.79M11.75M15.39M14.36M13.16M
Stockholders Equity47.04M46.07M46.44M58.30M57.97M57.98M
Cash Flow
Free Cash Flow15.89M12.12M14.36M20.32M18.92M15.09M
Operating Cash Flow17.60M14.58M17.70M25.22M25.70M18.80M
Investing Cash Flow-1.63M-2.25M-2.42M-4.52M-6.72M-3.38M
Financing Cash Flow-9.71M-9.93M-20.78M-20.75M-19.30M-16.42M

Micro-Mechanics (Holdings) Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.61
Price Trends
50DMA
1.59
Positive
100DMA
1.60
Positive
200DMA
1.61
Positive
Market Momentum
MACD
<0.01
Negative
RSI
53.55
Neutral
STOCH
62.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:5DD, the sentiment is Positive. The current price of 1.61 is above the 20-day moving average (MA) of 1.59, above the 50-day MA of 1.59, and above the 200-day MA of 1.61, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 53.55 is Neutral, neither overbought nor oversold. The STOCH value of 62.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:5DD.

Micro-Mechanics (Holdings) Peers Comparison

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
SG5DD
74
Outperform
$223.84M19.8325.02%7.45%9.05%41.96%
69
Neutral
¥228.59B14.337.64%2.71%9.13%8.49%
$786.19M<0.019.67%7.61%
SGAWX
55
Neutral
S$454.39M39.622.40%-20.96%
SGBVQ
S$101.89M258.330.82%
SGJLB
64
Neutral
S$332.50M29.978.66%0.31%43.32%96.93%
SGMZH
61
Neutral
S$413.85M53.812.02%1.34%15.39%140.82%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SG:5DD
Micro-Mechanics (Holdings)
1.61
0.10
6.91%
UMSSF
UMS Holdings
SG:AWX
AEM Holdings Ltd.
1.45
-0.37
-20.33%
SG:BVQ
Procurri Corporation Limited
0.31
0.09
40.91%
SG:JLB
Grand Venture Technology Limited
0.98
0.41
71.93%
SG:MZH
Nanofilm Technologies International Ltd.
0.64
-0.19
-22.89%

Micro-Mechanics (Holdings) Corporate Events

Micro-Mechanics Appoints New CEO to Drive Growth
Apr 29, 2025

Micro-Mechanics (Holdings) Ltd. has announced the appointment of Kyle Borch as the new CEO, effective from 1 July 2025. This leadership transition is part of the company’s strategy to ensure continuity and support long-term growth, with Borch previously leading initiatives that strengthened the company’s operational excellence. The transition is expected to position Micro-Mechanics for sustained growth and enhance its standing as a leading supplier in the semiconductor industry.

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: Jun 25, 2025