Frencken - UOB Kay Hian 2025-03-03: 2024 Results In Line; Cautiously Optimistic Amid Uncertain Times

• 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:
  1. semiconductor: higher revenue,
  2. medical: stable revenue,
  3. analytical life sciences: stable revenue,
  4. industrial automation: stable revenue, and
  5. 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.

John Cheong UOB Kay Hian Research | https://research.uobkayhian.com/ 2025-03-03 SGinvestors.io

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