Micro-Mechanics (Holdings)'s (SGX:5DD) Soft Earnings Are Actually Better Than They Appear
May 07
Singaporean (SGX) Tech Sector Analysis
UpdatedMay 19, 2024
DataAggregated Company Financials
Companies44
- 7D-2.7%
- 3M-3.3%
- 1Y-7.5%
- YTD-7.0%
Over the last 7 days, the Tech industry has dropped 2.7%, driven by UMS Holdings declining 20%. The industry has fallen 7.5% in the last year. As for the next few years, earnings are expected to grow by 12% per annum.
Sector Valuation and Performance
Has the Singaporean Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 20 May 2024 | S$9.2b | S$10.8b | S$449.3m | 11.4x | 20.5x | 0.9x |
| Wed, 17 Apr 2024 | S$9.6b | S$10.9b | S$453.9m | 11.7x | 21.1x | 0.9x |
| Fri, 15 Mar 2024 | S$9.4b | S$10.8b | S$448.7m | 11.2x | 21x | 0.9x |
| Sun, 11 Feb 2024 | S$9.3b | S$11.2b | S$479.7m | 13.6x | 19.3x | 0.8x |
| Tue, 09 Jan 2024 | S$9.9b | S$13.7b | S$494.2m | 13.7x | 20x | 0.7x |
| Thu, 07 Dec 2023 | S$9.7b | S$13.7b | S$494.2m | 13.4x | 19.6x | 0.7x |
| Sat, 04 Nov 2023 | S$9.5b | S$14.3b | S$614.6m | 11.8x | 15.5x | 0.7x |
| Mon, 02 Oct 2023 | S$9.5b | S$14.2b | S$605.3m | 12.1x | 15.7x | 0.7x |
| Wed, 30 Aug 2023 | S$9.7b | S$14.4b | S$592.1m | 15.2x | 16.3x | 0.7x |
| Fri, 28 Jul 2023 | S$10.2b | S$14.9b | S$686.1m | 11.8x | 14.9x | 0.7x |
| Sun, 25 Jun 2023 | S$10.1b | S$15.0b | S$686.5m | 12.1x | 14.6x | 0.7x |
| Tue, 23 May 2023 | S$10.1b | S$15.0b | S$694.5m | 10.3x | 14.5x | 0.7x |
| Thu, 20 Apr 2023 | S$11.0b | S$15.2b | S$739.2m | 10.6x | 14.8x | 0.7x |
| Sat, 18 Mar 2023 | S$10.8b | S$15.2b | S$741.6m | 10.5x | 14.5x | 0.7x |
| Mon, 13 Feb 2023 | S$11.8b | S$15.2b | S$874.7m | 11.4x | 13.5x | 0.8x |
| Wed, 11 Jan 2023 | S$11.6b | S$15.3b | S$875.9m | 11.2x | 13.2x | 0.8x |
| Fri, 09 Dec 2022 | S$11.6b | S$15.5b | S$881.2m | 10.7x | 13.2x | 0.8x |
| Sun, 06 Nov 2022 | S$10.8b | S$15.2b | S$830.5m | 10.4x | 12.9x | 0.7x |
| Tue, 04 Oct 2022 | S$11.3b | S$15.2b | S$826.4m | 12.6x | 13.7x | 0.7x |
| Thu, 01 Sep 2022 | S$12.5b | S$15.1b | S$824.9m | 13.4x | 15.1x | 0.8x |
| Sat, 30 Jul 2022 | S$12.2b | S$14.5b | S$783.3m | 13.8x | 15.6x | 0.8x |
| Mon, 27 Jun 2022 | S$11.8b | S$14.3b | S$776.8m | 11.7x | 15.2x | 0.8x |
| Wed, 25 May 2022 | S$12.0b | S$14.0b | S$748.4m | 12.7x | 16.1x | 0.9x |
| Fri, 22 Apr 2022 | S$12.4b | S$13.8b | S$729.7m | 13.8x | 17x | 0.9x |
| Sun, 20 Mar 2022 | S$11.9b | S$13.8b | S$733.1m | 13.1x | 16.2x | 0.9x |
| Tue, 15 Feb 2022 | S$12.2b | S$13.0b | S$712.7m | 14.7x | 17.2x | 0.9x |
| Thu, 13 Jan 2022 | S$12.7b | S$12.9b | S$726.4m | 13.1x | 17.4x | 1x |
| Sat, 11 Dec 2021 | S$13.0b | S$13.0b | S$724.4m | 13x | 18x | 1x |
| Mon, 08 Nov 2021 | S$12.6b | S$12.8b | S$723.2m | 15x | 17.5x | 1x |
| Wed, 06 Oct 2021 | S$12.0b | S$12.8b | S$726.6m | 15.2x | 16.6x | 0.9x |
| Fri, 03 Sep 2021 | S$12.5b | S$12.8b | S$727.6m | 14.5x | 17.2x | 1x |
| Sun, 01 Aug 2021 | S$12.4b | S$12.8b | S$727.6m | 14.7x | 17.1x | 1x |
Price to Earnings Ratio
17.6x
Current Industry PE
- Investors are optimistic on the Singaporean Information Technology industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 20.5x which is higher than its 3-year average PE of 16.4x.
- The industry is trading close to its 3-year average PS ratio of 0.82x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have declined 13% per year over the last three years,
- Revenues have also declined 4.5% per year.
- This means overall sales from these companies are declining and profits are subsequently falling as well.
Industry Trends
Which industries have driven the changes within the Singaporean Tech sector?
| SG Market | 0.62% | |
| Tech | -2.73% | |
| Communications | 0.47% | |
| Tech Hardware | 0.34% | |
| Electronic Equipment and Components | -0.40% | |
| IT | -1.47% | |
| Software | -1.69% | |
| Semiconductors | -11.22% | |
Industry PE
- Investors are most optimistic about the Communications industry which is trading above its 3-year average PE ratio of 16.1x.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
Forecasted Growth
- Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 31% over the next 5 years.
- This is better than its past earnings decline of 44% per year.
- In contrast, the Software industry is expected to see its earnings grow by 3.8% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| 5DD Micro-Mechanics (Holdings) | S$1.52 | 4.8% +S$9.7m | -19.1% | PE26.6x | |
| B69 Broadway Industrial Group | S$0.14 | 9.8% +S$5.9m | 51.0% | PE18.1x | |
| AWZ Multi-Chem | S$2.31 | 2.2% +S$4.5m | 32.8% | PE7.7x | |
| BN2 Valuetronics Holdings | S$0.60 | 1.7% +S$4.1m | 21.2% | PE9.7x | |
| A31 Addvalue Technologies | S$0.012 | 9.1% +S$3.2m | 9.1% | PS3x |
