- Frencken reported 1Q25 NPAT of S$10m, up 12% y-o-y, driven by 34% y-o-y growth in revenue to S$106.2m in its semicon segment.
- Currently, tariff costs are being absorbed by its customers, however, the upcoming semicon sector tariff will likely create some uncertainty ahead. Management expects revenue for the semicon segment to be higher h-o-h for 1H25 vs 2H24.
Semicon outlook remains robust.
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- Management expects its semicon sales to increase in 1H25E v 2H24, especially in Asia, and that it will continue to gain more wallet share of its key customers in the front-end equipment sector, especially from its European customer due a new programme ramping up. The other major customer has also seen its run-rate improve q-o-q and this is likely to persist.
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Expansion in SG and US positive amid tariffs.
- To cater to new and expanded existing programmes, as well as future business growth, Frencken will likely expand its production resources in Singapore to increase efficiency, capacity and capabilities and it is currently in the final stages of securing land.
- In the US, a new facility will be inaugurated in 1H25.
Top pick in our SG tech sector.
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