- 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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