On 30 January 2023, Micro-Mechanics Holdings Limited (“MMH”) have announced the half year results for 2023. The results have shown a downtrend, which is not unexpected given the slower growth for the global semiconductor industry in the coming months.

It would also appear that the markets are pricing in a cut in dividends for FY2023, which is not unexpected given that they are on track to have insufficient earnings to cover a similar payout as 2022. There is potential for share price to continue to fall and provide attractive opportunities for investors to enter.

All things considered, I think that with China’s U-turn in their zero covid policy, there is a chance for them to continue growing their business and improve their financials. MMH with their zero debt will likely to be able to survive the worse of FY2023 and emerge stronger in the subsequent years.