- Due to surging energy and labour costs in Europe, Frencken (SGX:E28)’s 3Q22E may be impacted despite already passing on higher costs to some of its customers. We expect margins to improve in 3Q22E, but there might be downside surprise either from its 3Q results or its guidance.
- - Read this at SGinvestors.io -
More negative news likely for the semi-con sector
- While the outlook and demand remains robust for the semi-con sector, there is likely more negative news in the near term as the US and its allies are likely to limit chip exports to China. Along with fears of a recession, demand for semi-con might suddenly drop, adding doubts about the market for FY23E.
- As of 1H22, revenue from semi-con accounted for more than 39% of Frencken’s total revenue.
Expecting gradual recovery of margins
- - Read this at SGinvestors.io -
Risk demand may drop unexpectedly in Europe
- Read more at SGinvestors.io.
