MacRitchie Reservoir, Singapore
An image captured while hiking deep inside MacRitchie Reservoir just before Singapore implementation of 'circuit breaker' or lockdown.
Walking is a simple pleasure. An activity one appreciate with age. In a tranquil environment, it allows the mind to find peace and contentment.
In contentment, one learn to turn away from temptation and greed. Focusing our time and energy on relationships and friendships dear to us.
He who is not contented with what he has,
Would not be contented with what he would like to have.
Micro-Mechanics service the semiconductor and high technology industries providing designs and manufacturing of high precision parts and tools.
The Singapore company began in 1983 and was listed in SGX in June 2003. Factories are located in Singapore, Malaysia, China, Philippines and the United States.
To accelerate Custom Machining Assembly (CMA) growth, the firm acquired AMP3, a California based company in 2008 for 2.5M to access customer in the aircraft, medical, bioscience among other industries. In 2017, the company decided to defocus CMA and to focus her effort primarily on core semiconductor tooling business.
Revenue had been growing steadily the past 15 years with expanding sales in Singapore, Malaysia, USA and China. Revenue in FY19 declined 7% across all geographical locations due to cyclical downturn in the industry and trade war.
Despite the headwind, gross margin remain healthy at 53.7% with a net margin of 21.5%.
The semiconductor industry is an extremely competitively business and mid-stream players margins are constantly squeezed by both end of the value chain.
Micro-Mechanics competitive advantage lies in her ability to manage productivity / efficiency better than competition resulting in growing margins.
Micro-Mechanics competitive strength was not build over-night but through a culture of consistent improvement in productivity and training.
The company decision to continue with quarterly reporting is not just a matter of transparency and good corporate governance. Implicit is her understanding that what gets measured gets done.
In a competitive industry, timely management reporting is an invaluable tool to constantly measure and identify areas for improvement to stay ahead of the game.
It is no coincidence that financial markets recognise the company achievement with a higher valuation despite the fact that Micro-Mechanics at $60M revenue is quite a small company.