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

Frencken - 1Q23 Earnings Below Expectation Due To Weaker Margin, Outlook Remains Cautious

Frencken (SGX:E28) | SGinvestors.ioFrencken (SGX:E28)
  • 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.

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Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @

John Cheong UOB Kay Hian Research | 2023-05-23

Read also UOB's most recent report:
2024-02-29 Frencken Group - Semiconductor Segment Outperforms; 2023 Results Above Expectations.

Previous report by UOB:
2024-02-19 Frencken Group - Positive Recovery Signs From Key Customers; Raise Target Price By 34%.

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


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