Micro-Mechanics (SGX: 5DD) saw its stock price soar 5.73% during intraday trading on Friday, reflecting investor optimism following the company's latest financial performance and positive industry developments.
The semiconductor equipment supplier reported strong third-quarter results, with revenue rising 16.2% year-on-year to S$18.6 million and net profit increasing 18.8% to S$3.8 million. The company's consumable tools segment, which accounts for the majority of sales, grew 20.9% year-on-year, while its largest market, China, jumped by over 25%.
The positive momentum comes amid an improving semiconductor industry outlook, with global chip sales projections being revised upward to nearly US$1 trillion for 2026. Micro-Mechanics' operational improvements, including gross margins holding above 50% for three consecutive quarters and a strong balance sheet with S$25.7 million in net cash and zero debt, further contributed to investor confidence in the stock's performance.