- Frencken (SGX:E28)'s 3Q25 PATMI of S$9.9m is in line with consensus forecasts and ours.
Pockets of weakness, but still positive long term
- We see weakness in analytical life sciences and this could persist in 4Q. Management also guided for lower revenue from a key semi-con customer in Europe due to end market demand moderating, especially in 4Q. As a result, we cut our FY25/26E PATMI estimates by 4.8% and 9.1% to reflect this weakness.
- - Read this at SGinvestors.io -
Weakness of key semi-con European client
- - Read this at SGinvestors.io -
- Weakness in the analytical life science business in Europe will also continue, which should also impact profitability.
Longer term growth prospects unchanged
- Nevertheless, management remains confident about its long-term growth prospects, especially as it will begin construction of a larger facility in Singapore.
- 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.
Still our Top Pick
- Read more at SGinvestors.io.
