- ASML reported a strong 4Q22 earnings growth of 28% y-o-y on 25 Jan 23 and guided for sales growth of more than 25% y-o-y in 2023 as demand remains high.
- We expect Frencken to benefit from this guidance as ASML contributed around 30% of its total revenue as of 1H22. Also, Frencken’s gross margin should improve q-o-q as electricity costs in Europe are falling and Frencken had passed on cost increases to customers in 4Q22.
- - Read this at SGinvestors.io -
Positive guidance from Frencken's major customer ASML.
- On 25 Jan 23, Frencken (SGX:E28)’s major customer ASML reported a strong 4Q22 earnings growth of 28% y-o-y which beat earnings forecast as it is still struggling to meet demand from top customers: TSMC, Samsung and Intel which are engaged in major expansion.
- - Read this at SGinvestors.io -
- ASML’s CEO highlighted that although the economic outlook for 2023 is clouded by worries over the economy and growing semiconductor inventories, customers also see conditions improving toward the end of the year and China's economy recovering after the end of COVID-19 curbs. As a result, the demand is still higher than what ASML can make.
Falling natural gas prices in Europe should reduce Frencken’s energy expenses.
- Read more at SGinvestors.io.
