- Frencken (SGX:E28) reported a much better 2Q23 with PATMI of S$6.9m, 32% higher q-o-q and ahead of our and consensus estimates at 54% and 55%. We expect performance to have bottomed in 1Q23 and forecast better quarters ahead in 2H23E.
- - Read this at SGinvestors.io -
- Frencken is one of a handful of semi-con stocks trading at below NAV, at S$0.90 per share.
Semi-con likely bottomed for Frencken
- Frencken's management says the worst is likely over and it expects higher semi-con revenue for 2H23E than 1H23E. This is vital as semi-con contributions will determine its financial performance.
- - Read this at SGinvestors.io -
Well positioned to benefit from semi-con recovery
- Frencken is likely to benefit as increased orders from its key customer should ramp up utilisation and allow it to enjoy the operating leverage it had in FY22.
- While Frencken is still focusing on its investments in programmes for existing and new customers, we believe it will be well-positioned to capitalise on semi-con demand recovery, especially in FY24E.
Opportunity for the longer term
- Read more at SGinvestors.io.
