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

Published:
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.
  • - Read this at SGinvestors.io -
  • 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.

  • - Read this at SGinvestors.io -
  • 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 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 @ https://www.utrade.com.sg/.




John Cheong UOB Kay Hian Research | https://research.uobkayhian.com/ 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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