- Frencken's 3Q24 revenue reached S$198.6mil, a 7.7% y-o-y increase (11% q-o-q), driven primarily by a 23% y-o-y surge (19% q-o-q) in its semiconductor segment, which accounts for 46% of total revenue. This growth stemmed from strong sales to a key European customer and continued recovery in Asia.
Strong semiconductor growth, mixed performance across other segments.
- - Read this at SGinvestors.io -
- 3Q24 gross margin improved to 14.0% from 12.4% in 3Q23, but remained below the 1H24 level of 14.8%. Net profit increased 29% y-o-y to S$ 9.2mil but was flat q-o-q.
- Frencken's 9M24 net profit surged 42% y-o-y, despite revenue growth of only 6.7%. However, revenue and net profit for the nine-month period reached only 70% and 62% of our forecasts, respectively, below expectations.
3Q24 net margin a tad weaker but sustainable recovery expected.
- - Read this at SGinvestors.io -
- We continue to expect the margin recovery to be sustainable. Net margin has been on an uptrend since hitting a trough in 1Q23.
Strong semiconductor outlook fuels positive 2H24 revenue projections.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Lee Keng LING DBS Group Research | https://www.dbs.com/insightsdirect/ 2024-11-21
Previous report by DBS:
2024-08-19 Frencken Group - Optimistic Outlook, Semiconductor Shines.
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
