Micro-Mechanics (Holdings) (SGX: 5DD), or MMH, returned over 64% year to date as of the market close last Friday (19 September 2026), according to Fiscal.ai.
For context, the semiconductor tooling specialist more than doubled the SPDR STI ETF‘s (SGX: ES3) return of 24.9% over the same period.
The latest full-year numbers show why.
FY2026, which ended 30 June 2026, was MMH’s best financial year since FY2022.
What drove MMH’s record year?
For FY2026, MMH posted revenue of S$75.5 million, up 15.8% year on year (YoY).
Net profit climbed 28.3% to S$15.9 million.
Operating profit rose 31.5% to S$21.8 million.
Revenue grew faster in every successive quarter: 2.9% in 1QFY2026, 14.5% in 2QFY2026, 16.2% in 3QFY2026, and 29.2% in 4QFY2026.
For 4QFY2026, revenue rose to S$21.6 million.
Net profit for the quarter grew 65.7% to S$5.3 million.
MMH held gross margins above 50% for four consecutive quarters in FY2026.
The 52% in 4QFY2026 was a 17-quarter high.
Full-year gross margin for FY2026 widened to 51.6%, up from 49.4% in FY2025.
Management credited operating leverage and enhanced manufacturing processes under its Five-Star Factory programme.
Consumable tools, which made up 80.5% of 4QFY2026 sales, grew 33.1% YoY to S$17.4 million.
China remained MMH’s largest market at 34.2% of FY2026 revenue.
Sales there grew 26.6% YoY.
The semiconductor tailwind
The World Semiconductor Trade Statistics (WSTS) has revised its 2026 industry forecast upward throughout the year.
The projection rose from US$800 billion in 1QFY2026, to US$975 billion in 2QFY2026, to nearly US$1 trillion in 3QFY2026.
Today?
WSTS puts 2026 at nearly US$1.7 trillion, implying growth of 108% YoY.
Memory chips alone are up more than 300%.
The Semiconductor Industry Association reported June 2026 sales of US$151.9 billion, an all-time industry high.
June 2026 sales rose 134.2% YoY.
MMH’s own quarterly acceleration tracks the same trend.
A look ahead at MMH’s five-year growth plan?
MMH has launched a five-year plan to double revenue to at least S$150 million while holding gross margins above 50%.
The plan carries a hefty price tag.
MMH has budgeted S$12 million in growth capital expenditure for FY2027, more than triple the S$3.8 million invested in FY26.
Dividend investors will be watching MMH’s free cash flow.
For FY2026, free cash flow came in flat at S$16.8 million.
Higher inventory and receivables absorbed the earnings growth.
Operating cash flow rose just 3.5% to S$18.9 million despite net profit rising 28.3%.
This could be why MMH held its total dividend flat at S$0.06 per share for a third consecutive year.
The company chose to invest for growth rather than pay higher dividends.
To be sure, the company carries S$30.1 million of net cash and no borrowings, up from S$23.3 million a year earlier.
Get Smart: What to watch next
MMH’s five-year plan asks you to accept flat dividends today for the prospect of larger payouts once the investment cycle matures.
Can management deploy S$12 million a year productively while maintaining the 50%-plus gross margins delivered in FY2026?
The semiconductor tailwind is unmistakable.
Whether MMH captures its share of an industry heading toward US$1.7 trillion will decide if this investment cycle pays off.
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Disclosure: Chin Hui Leong owns shares of MMH.
