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Paul Chew on MM 3May2021
![[Image: Capture-1.png]](https://www.stocksbnb.com/wp-content/uploads/2021/05/Capture-1.png)
Q3 result
Rev S$17m (vs 16m)
GP S$9m (vs 8m)
NP S$4m (vs 3m)
9month
Rev S$54m (vs 47m)
GP S$29m (vs 25m)
NP S$13m (vs 10m)
The Negative
Gross margins lower than expected
We had expected record revenue and increase product complexity to lift margins, mirroring its FY17-18 upcycle when margins ere 57% and capacity utilisation, 60%.
Current utilisation is only 56%. Capex ramp in the past few years has yet to be fully utilised.
Maintain NEUTRAL with lower TP of S$3.02, from S$3.35
MMH pays attractive dividend yields of 4%, backed by net cash. Its strengths include consumable semiconductor products, high gross margins of 55% and ROEs of 32%.
Gratitude!
Q3 result
Rev S$17m (vs 16m)
GP S$9m (vs 8m)
NP S$4m (vs 3m)
9month
Rev S$54m (vs 47m)
GP S$29m (vs 25m)
NP S$13m (vs 10m)
The Negative
Gross margins lower than expected
We had expected record revenue and increase product complexity to lift margins, mirroring its FY17-18 upcycle when margins ere 57% and capacity utilisation, 60%.
Current utilisation is only 56%. Capex ramp in the past few years has yet to be fully utilised.
Maintain NEUTRAL with lower TP of S$3.02, from S$3.35
MMH pays attractive dividend yields of 4%, backed by net cash. Its strengths include consumable semiconductor products, high gross margins of 55% and ROEs of 32%.
Gratitude!