- We maintain our positive stance on Frencken (SGX:E28) even though 1H24’s results were slower than expected. Nonetheless, we see Frencken as a beneficiary of the anticipated semiconductor recovery going forward.
- - Read this at SGinvestors.io -
- Frencken's share price trades at ~12x FY25F earnings P/E, i.e. near its historical mean average.
1H24 slower than expected.
- Frencken's 1H24 revenue grew 6.2% y-o-y to S$373m while earnings surged 50% y-o-y to S$18m on the back of recovering topline and better gross margins. Revenue growth was mainly driven by the mechatronics division, which grew by 8% y-o-y to S$327m, offset by the integrated manufacturing services (IMS) division’s 4% y-o-y revenue decline to S$44m.
- - Read this at SGinvestors.io -
- Gross margin rose by 2.5ppts to 14.8% from better operating leverage. EBIT grew 42% y-o-y to S$26m on better gross margins and opex.
FY24F earnings change (-11.6%). with FY25 and FY26F earnings cut by 7.6% each.
- Read more at SGinvestors.io.
Alfie Yeo RHB Securities Research | https://www.rhbgroup.com/ 2024-08-23
Previous report by RHB:
2024-05-16 Frencken - Expect Revenue Traction To Improve; Keep BUY.
Price targets by 3 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
