- We don’t expect key customer AMAT’s weak guidance to impact Frencken. However, we see weakness in analytical life sciences and this could persist in 2H25E. Traditionally, 2H has always been stronger than 1H, but management is guiding for a stable 2H25.
- - Read this at SGinvestors.io -
Weakness in some customers
- Frencken is guiding for a stable 2H25E but traditionally 2H has been seasonally stronger. This may be because management expects analytical life sciences revenue to drop in 2H25.
- There may also be some weakness from its European semi-con customers due to US control and restrictions on the export of semi-con equipment.
Longer term growth prospects unaffected.
- - Read this at SGinvestors.io -
- Frencken will also build new manufacturing facilities in the US. Larger cleanrooms are likely to be built in the new Singapore facility for its key semi-con clients.
Cutting target price to S$1.60, but maintain BUY.
- Read more at SGinvestors.io.
