Frencken - UOB Kay Hian 2023-05-23: 1Q23 Earnings Below Expectation Due To Weaker Margin, Outlook Remains Cautious

• Frencken’s 1Q23 earnings of S$5.2m (-60% y-o-y) was below expectation, meeting only 11% of our full-year estimate mainly due to gross margin compression caused by continuing inflationary cost pressure and higher depreciation.
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• Frencken expects the business environment to remain challenging in 2023. We cut our 2023 earnings forecast for Frencken by 44%. Maintain HOLD with a 28% lower target price of S$0.78 for Frencken.

Frenken's 1Q23 earnings of S$5.2m (-12% y-o-y) missed our estimate on gross margin pressure.

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• On the other hand, Frencken's 1Q23 revenue of S$173m (-13% y-o-y) was in line, at 24% of our full-year estimate.

Revenue declined across three segments, while that for medical and analytical & life sciences rose.

• 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 2 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