Frencken Group - UOB Kay Hian 2022-11-30: 3Q22 Impacted By Cost Pressures, Weaker Currency & Inventory Write-Down

• Frencken's 3Q22 earnings of S$11m (-26% y-o-y/-17% q-o-q) was below expectations, 9M22 formed 66% of our full-year estimate. 3Q22 revenue fell 1% y-o-y, with semiconductor (+16% y-o-y), life science (+8% y-o-y) and medical (+3% y-o-y) recording growth while industrial automation (-35% y-o-y) and automotive (-7% y-o-y) declined.
• - Read this at SGinvestors.io -
• We cut our 2022 and 2023 EPS forecast for Frencken by 16%. Downgrade Frencken to HOLD.

Flattish revenue in 3Q22 with mixed performance across different segments.

• - Read this at SGinvestors.io -
• 3Q22 revenue of S$195m (-0.6% y-o-y/+2.5% q-o-q) was led by growth from the semiconductor (+16% y-o-y), life science (+8% y-o-y) and medical (+3% y-o-y) sectors.
• Growth in the semiconductor space was lifted by higher orders for front-end semiconductor equipment from customers in Europe and Asia. However, sales in the industrial automation (-35% y-o-y) and automotive (-7% y-o-y) sectors were impacted by reduced customer demand and bottlenecks in the global supply chain.

Cost pressures expected to ease in 2H22.

• Read more at SGinvestors.io.

Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Read also UOB's most recent report:
2025-11-18 Frencken - Outlook For 2H25 Downgraded Due To Semiconductor Softness.

Previous report by UOB:
2025-08-18 Frencken - 1H25 Results In Line; Expect Stable Outlook For 2H25.

Price targets by 4 other brokers at Frencken Target Prices.

Listing of research reports at Frencken Analyst Reports.

Relevant links:
Frencken Share Price History,
Frencken Announcements,
Frencken Dividend Payout Dates & Corporate Actions,
Frencken News