Frencken’s 2024 earnings of S$37m (+14% y-o-y) were in line with our expectations, forming 100% of our full-year forecast. The results improvement was driven by 7% y-o-y revenue growth as well as gross margin improvement.
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Revenue growth across 3 key segments offset by drop in automotive and industrial automation revenues.
Frencken’s 2024 revenue grew 7% y-o-y, mainly driven by the semiconductor (+29% y-o-y), analytical life sciences (+7%) and medical (+2%) segments.
Growth in the semiconductor segment was driven by increased orders from a key customer in Europe and continued recovery in sales from the Asia operations.
The analytical life sciences segment saw higher sales from a key customer in Europe.
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Semiconductor industry expected to continue path to recovery.
Amid economic uncertainties, Frencken holds a cautiously optimistic stance and expects to post higher revenue in 1H25 compared to 2H24, with segment performances as follows:
semiconductor: higher revenue,
medical: stable revenue,
analytical life sciences: stable revenue,
industrial automation: stable revenue, and
automotive: stable revenue.
The global economic outlook remains uncertain, but the semiconductor industry is expected to continue the path to recovery. The overall long-term outlook for the chip sector also remains positive even though volatility may persist.
To navigate the shifting landscape, Frencken believes in building resilience & ensuring adaptability.
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/.
