We remain positive on Frencken (SGX:E28), with growth supported by its medical, industrial automation, and automotive segments – despite anticipating slower growth from its semiconductor and analytical & life science segments.
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3Q25 revenue below.
3Q25 revenue grew 7% y-o-y to S$212m while PATMI expanded by 8% y-o-y to S$10m. Revenue growth was driven by the mechatronics division’s (+7% y-o-y; S$189m) semiconductor, medical, and industrial automation segments – offset by the analytical & life sciences segment. The integrated manufacturing services (IMS) division’s revenue was flat at S$22m.
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The medical segment grew 6% y-o-y to S$32m on more Asia orders. The industrial automation segment grew 51% y-o-y to S$14m from its key data storage customer’s higher orders.
The analytical & life sciences segment dipped 8% y-o-y to S$41m on lower customer demand – especially in Europe, which was affected by end-market conditions from reduced expenditure in the semiconductor market, government research funding cuts in the US, and trade challenges with China for a key customer.
The IMS division’s automotive segment was flat at S$16m, while the consumer and industrial electronics segments were stable at S$4m (GPM improved by 0.8ppts to 15.8%). Net margin of 4.7% was slightly below expectations.
Orders from key customer may slow.
Read more at SGinvestors.io.
Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
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