Frencken Group - Expecting H-o-h Revenue Growth In FY22
- Frencken (SGX:E28)'s FY21 net profit was in line with our/Bloomberg consensus full-year expectations, at 97% of full-year forecasts.
- Management guided that Frencken should see a moderate increase in its revenue in 1H22F versus 2H21.
- Reiterate ADD. Frencken announced a higher S$0.0431 dividend for FY21 (FY20: S$0.03).
- Given cost pressures, we have assumed higher operating expenses and reduced our FY22-23F earnings per share (EPS) forecast for Frencken by 2.04-3.25%. Keeping our 10% premium to the CY23F sector average P/E multiple of 10.60x (given Frencken’s FY21-24F EPS CAGR of 16.5%) our new P/E multiple is 11.66x, translating into a slightly lower target price of S$2.06.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
William TNG CFA CGS-CIMB Research | https://www.cgs-cimb.com 2022-02-28 2022-02-28
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