Frencken's 3Q24 earnings of S$9.2m (+29% y-o-y/flat q-o-q) missed our expectations by 16%, with 9M24 earnings forming only 61% of our full-year forecast.
Frencken expects an uneven recovery for its business but maintains its guidance of better revenue for 2H24 vs 1H24.
Slower-than-expected revenue recovery.
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Gross margin grew 1.6ppt y-o-y to 14.0% in 3Q24 mainly due to better operating leverage.
Revenue growth across two key segments offset by drop in medical and automotive revenues.
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The analytical life sciences segment saw higher sales from a key customer in Europe.
On the other hand, the medical (-4% y-o-y) and automotive (-12% y-o-y) segments saw a decline in revenue due to slower customer orders.
Uneven recovery in semiconductor industry but long-term outlook continues to be positive
Read more at SGinvestors.io.
Above is an excerpt from a report by UOB Kay Hian Research. Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.
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