- Frencken (SGX:E28) reported strong FY22 PATMI of S$51.9m, above ours and consensus estimates. However, its outlook for its semi-con segment was worse than expected - despite a key customer with a great outlook - as other Asian-based semi customers are suffering slowdowns.
- - Read this at SGinvestors.io -
Semicon segment hit by customers in Asia
- - Read this at SGinvestors.io -
- However, another similar size key customer with a large Singapore presence has a lot of existing inventory hence new orders will likely be pushed towards 2024 which will likely result in a slowdown for Frencken. It has also taken on a similar customer in Malaysia which is facing similar issues.
- Hence, we believe a slowdown is inevitable for Frencken while management is guiding that 1H will be much weaker than 2H22. We expect semi-con revenue to pick up again in FY24E.
Analytical and life science a bright spark
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://www.ketrade.com.sg/.
Jarick Seet Maybank Research | https://www.maybank-ke.com.sg/ 2023-03-01
Read also Maybank's most recent report:
2023-09-13 Frencken Group - Accumulate For FY24; BUY With Higher Target Price.
Previous report by Maybank:
2023-08-14 Frencken Group - Better Times Ahead; Maintain BUY With Higher Target Price.
Price targets by 2 other brokers at Frencken Target Prices.
Listing of research reports at Frencken Analyst Reports.
Relevant links:
Frencken Share Price History,
Frencken Announcements,
Frencken Dividends & Corporate Actions,
Frencken News Articles
