- Frencken (SGX:E28)'s 3Q23 revenue of S$184.4m (-5.6% y-o-y, +3.3% q-o-q) was at 104.3% of our S$176.8m forecast, in line with our expectation. 9M23 revenue was in line with expectations at 76% of our and 75% of Bloomberg consensus full-year forecasts.
3Q23 net profit 18.3% above our expectation
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- Frencken''s 9M23 net profit was above our expectation at 80% of our full-year forecast, but in line with Bloomberg consensus’ at 76%.
- The revenue decline in the third quarter was due to the slowdown in the semicon industry while the net profit decline was due to inflationary cost pressures and higher interest expense.
2H23F to be stable vs 1H23
- - Read this at SGinvestors.io -
- Frencken (SGX:E28)'s 3Q23 revenue of S$184.4m (-5.6% y-o-y, +3.3% q-o-q) was at 104.3% of our S$176.8m forecast, in line with our expectation. 9M23 revenue was in line with expectations at 76% of our and 75% of Bloomberg consensus full-year forecasts.
- 3Q23 net profit fell 35.3% y-o-y to S$7.1m, still 18.3% above our S$6.0m forecast. On a q-o-q basis, Frencken's 3Q23 revenue grew 3.3% and net profit grew 2.9%.
- Frencken''s 9M23 net profit was above our expectation at 80% of our full-year forecast, but in line with Bloomberg consensus’ at 76%.
- The revenue decline in the third quarter was due to the slowdown in the semicon industry while the net profit decline was due to inflationary cost pressures and higher interest expense.
- Frencken guided that it expects 2H23F revenue to remain stable as compared with 1H23. The group expects cost sharing efforts with its customers in Europe to yield positive effect from 4Q23F and has entered into discussions and agreements with certain customers to allow for a more proactive approach in managing supply chain and operational costs.
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