Company Coverage
Frencken Group (FRKN SP): 1H26: Earnings In Line With Expectation; Expect A Better 2H26
BUY (Maintained)
Current price:
Target price:
Upside:
S$2.63
S$3.30
+25.5%
Analyst
Highlights
1H26 earnings of S$19m (-2% yoy) is in line with expectation, meeting 43% of our full-year estimate. 2Q26 earnings of S$11m grew 14% yoy/41% qoq.
1H26 revenue fell 1% to S$427m mainly due to weaker semiconductor and analytical life sciences segments. Performance improved in the medical, automotive and industrial automation segments.
Frencken expects 2H26 revenue to improve yoy and hoh. Maintain BUY with an unchanged target price of S$3.30.
Analysis
1H26 earnings of S$19m (-2% yoy) is in line with expectation, accounting for 43% of our full-year estimate. In addition, Frencken Group (Frencken) gained traction in 2Q26, with earnings of S$11m uop 14% yoy/41% qoq.
Revenue fell across two key segments, but offset by increase in other segments. Frencken’s 1H26 revenue fell 1% yoy to S$427m mainly due to weaker semiconductor (-1% yoy) and analytical life sciences segments (-14% yoy). This was offset by better performance in the medical (+10% yoy), automotive (+10% yoy) and industrial automation (+10% yoy) segments.
2H26 revenue expected to be higher than 2H25 and 1H26. The expected yoy revenue growth of key segments in 2H26 is as follows: a) semiconductor (higher), b) medical (higher), c) automotive (higher), d) analytical life sciences (stable) and e) industrial automation (lower). Demand outlook from a major front-end semiconductor equipment OEM in Asia remains solid, particularly for certain semiconductor programmes in volume production. In Europe, the mechatronics division is well positioned to support an anticipated ramp-up in activities for a major front-end semiconductor equipment customer.
Highlights
1H26 earnings of S$19m (-2% yoy) is in line with expectation, meeting 43% of our full-year estimate. 2Q26 earnings of S$11m grew 14% yoy/41% qoq.
1H26 revenue fell 1% to S$427m mainly due to weaker semiconductor and analytical life sciences segments. Performance improved in the medical, automotive and industrial automation segments.
Frencken expects 2H26 revenue to improve yoy and hoh. Maintain BUY with an unchanged target price of S$3.30.
Analysis
1H26 earnings of S$19m (-2% yoy) is in line with expectation, accounting for 43% of our full-year estimate. In addition, Frencken Group (Frencken) gained traction in 2Q26, with earnings of S$11m uop 14% yoy/41% qoq.
Revenue fell across two key segments, but offset by increase in other segments. Frencken’s 1H26 revenue fell 1% yoy to S$427m mainly due to weaker semiconductor (-1% yoy) and analytical life sciences segments (-14% yoy). This was offset by better performance in the medical (+10% yoy), automotive (+10% yoy) and industrial automation (+10% yoy) segments.
2H26 revenue expected to be higher than 2H25 and 1H26. The expected yoy revenue growth of key segments in 2H26 is as follows: a) semiconductor (higher), b) medical (higher), c) automotive (higher), d) analytical life sciences (stable) and e) industrial automation (lower). Demand outlook from a major front-end semiconductor equipment OEM in Asia remains solid, particularly for certain semiconductor programmes in volume production. In Europe, the mechatronics division is well positioned to support an anticipated ramp-up in activities for a major front-end semiconductor equipment customer.
BUY (Maintained)
Current price:
Target price:
Upside:
S$2.63
S$3.30
+25.5%
Analyst
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