Frencken Group (E28) H1 2024 earnings summary

Executive summary

• Revenue rose 6.2% year-over-year to S$372.7 million for 1H24, driven by Mechatronics growth offsetting IMS decline.

• Net profit attributable to equity holders surged 50.3% to S$18.1 million in 1H24.

• Gross profit margin improved to 14.8% from 12.3% in 1H23, reflecting better operating leverage.

• Earnings per share increased to 4.25 cents from 2.83 cents year-over-year.

Financial highlights

• Gross profit climbed 27.6% to S$55.2 million in 1H24.

• Profit before income tax jumped 48.6% to S$23.5 million.

• Net cash from operating activities was S$8.5 million; net cash used in investing and financing was S$5.2 million and S$16.1 million, respectively.

• Net asset value per share rose to 96.13 cents as at 30 June 2024.

• Total borrowings decreased to S$86.1 million; net cash position at S$39.7 million.

Outlook and guidance

• Group expects higher revenue in 2H24 versus 1H24, with semiconductor segment to post higher revenue.

• Medical, analytical life sciences, and automotive segments anticipated to remain stable; industrial automation revenue expected to decrease.

• No interim dividend declared; annual dividend to be considered with full-year results.

• Group remains cautious amid global uncertainties but confident due to strong financials and customer relationships.