- We expect Frencken's 4Q23 to show gradual improvement q-o-q with FY23 revenues at S$723m and NPAT at S$25m. However, it’s key customer Applied Materials (AMAT) just reported a stellar 1Q24 result and lifted its 2Q24E earnings outlook.
- - Read this at SGinvestors.io -
- In addition, Frencken's subsidiary ETLA is one of the 12 suppliers globally that won AMAT’s best in class performance award for 2023. We believe Frencken will be a key beneficiary of AMAT’s production shift to Southeast Asia (SEA) via new projects and volumes.
Key customer lifted guidance for FY24E
- Frencken (SGX:E28)'s key semi-con customer AMAT which contributes to 30-35% of their whole semi-con segment reported 1Q24 results on 16 Feb 2024 and lifted 2Q24 top line and adjusted EPS guidance. We now believe AMAT’s inventory levels will be drawn down, raising the probability of more orders for Frencken.
- - Read this at SGinvestors.io -
Utilisation to rise
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