Frencken Group (E28) H2 2024 earnings summary

Executive summary

• Revenue rose 6.9% year-over-year to S$794.3M in FY2024, led by Mechatronics growth offsetting IMS decline.

• Net profit attributable to equity holders increased 14.3% to S$37.1M for FY2024.

• Gross profit margin improved to 14.5% from 13.2% year-over-year, reflecting better operating leverage.

• Final dividend of 2.61 cents per share proposed for FY2024, up from 2.28 cents in FY2023.

• Net cash position of S$72.6M and total debt-to-equity ratio at 20% as of 31 Dec 2024.

Financial highlights

• Mechatronics revenue up 9.3% to S$706.1M, driven by semiconductor (+29.4%), medical (+2.4%), and analytical life sciences (+6.7%).

• IMS revenue declined 8.6% to S$85.7M, mainly due to lower automotive sales (-10.7%).

• Operating cash flow of S$48.0M; net cash used in investing S$11.1M and financing S$15.6M.

• Earnings per share increased to 8.69 cents from 7.60 cents year-over-year.

• Net asset value per share at S$1.01 as of 31 Dec 2024.

Outlook and guidance

• Cautiously optimistic for 1H25, expecting higher revenue than 2H24, especially in semiconductor.

• Medical, analytical life sciences, and automotive segments expected to remain stable in 1H25.

• New USA facility to be inaugurated in 1H25 to support growth.

• Plans to enhance and expand production resources in Singapore.