Frencken Group - DBS Research 2024-02-28: Recovery Intact; A Stellar FY23 Boosted By Strong Performance In Europe

Frencken Group - Recovery Intact; A Stellar FY23 Boosted By Strong Performance In Europe

Frencken (SGX:E28) | SGinvestors.ioFrencken (SGX:E28)
  • Frencken (SGX:E28)'s 2H23 revenue eased 1.3% y-o-y but rose 11.6% h-o-h to S$391.8m, mainly boosted by higher sales in the semiconductor and analytical & life sciences segments. Net profit saw a 20.7% decline but surged 69% h-o-h to S$20.4m.

FY23 results above expectations; Europe’s robust sales partially cushioned weaker sales in Asia.

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  • Higher sales from the semiconductor, medical and analytical & life sciences segments of its Europe operations helped offset lower sales in the industrial automation and semiconductor businesses of its Asia operations.
  • A 2.28 cents dividend was declared for FY23 compared to 3.64 cents for FY22 (30% payout ratio). See Frencken's dividend dates.

Quarterly net margin continued to see improvement.

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  • For the full year, Frencken's net margin of 4.4% was still lower than FY22’s 6.6%, due to lower revenue, inflationary cost pressures, and increased depreciation expenses from capital investments to upgrade and expand the group’s global manufacturing facilities.
  • Moving forward, we expect net margins to hover around the 5-6% range.

Well positioned for recovery, supported by a sound balance sheet and diversified portfolio.

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Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @

Lee Keng LING DBS Group Research | 2024-02-28

Previous report by DBS:
2023-11-23 Frencken Group - Improving Margins & Outlook; Upgrade To BUY.

Price targets by 4 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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