On 28 April 2023, Micro-Mechanics Holdings Limited (“MMH”) have announced the third quarter results for 2023. I am expecting a dividend to be cut to pre-Covid levels and semiconductor boom of around SGD0.100 per share to be sustainable, as the FY2023 results have continued to show a downtrend.

This expected dividend payout will translate to a yield of around 5.78% based on the current share price of SGD1.73. The markets are also pricing in a cut in dividends for FY2023, with the share price falling 28.5% from SGD2.42 in my last article on 4 February 2023. This is not unexpected given that they are likely 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.

Although China have opened up at the start of FY2023, there have not been significant