- With key customers ASML and Applied Material (AMAT) raising their revenue forecasts, we believe Frencken (SGX:E28)’s Singapore and Malaysia factory utilisation should benefit from a recovery of orders in FY24E, especially when ASML is also shifting some of its production from Europe to Malaysia.
- - Read this at SGinvestors.io -
- We are now more confident of a stronger FY24E, and raise FY24E PATMI by 8.5% on better margins due to higher operating leverage and better utilisation across SEA factories.
Semi-con bottomed for Frencken
- Frencken's management concurs that the worst is likely over and it expects higher semi-con revenue for 2H23E than 1H23E. This is vital as semi-con contribution is crucial to its financial performance.
- - Read this at SGinvestors.io -
- In addition, its key customer in Europe with a 1.5-2.0 year lead time for its lithography machines is also trying to move some production to Malaysia which we believe will likely benefit Frencken as it is already assisting the customer shift of some production to Malaysia. We believe Frencken will likely win more market share from its European competitors.
Poised for FY24E recovery
- Read more at SGinvestors.io.
