Frencken (SGX:E28)'s 2H25 revenue/PATMI were within our expectations, at 103%/99% of our FY25 forecasts. 2H25 PATMI was stable at +1% y-o-y to S$19.2mil, driven by a 76% spike in industrial automation revenue but offset by a 12% y-o-y decline in analytical life science revenue. Demand is sluggish amidst lower research funding in the US.
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We expect orders to pick up gradually and ramp in 2H26e, when its key customer ramps the most advanced lithography machine. TSMC sees increasing demand for AI/HPC and guided a 32% y-o-y increase in 2026e capex to S$54bn midpoint, with 70-80% of it spent on advanced process technologies. We believe this will drive demand for Frencken’s key semiconductor customers who are high-end equipment makers.
The Positives
Industrial automation, medical drives growth.
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2H25 medical revenue increased 7% y-o-y to S$65.4mil, driven by higher demand for X-ray and digital pathology equipment from China.
Net cash spiked 92% y-o-y to S$139.6mil.
Read more at SGinvestors.io.
Above is an excerpt from a report by Phillip Securities Research. Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.
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