Broker Name: Maybank Research Pte Ltd
Date of Report: November 17, 2025
Excerpt from Maybank Research Pte Ltd report.
Report Summary
- Frencken Group’s 3Q25 PATMI of SGD9.9m is in line with expectations, but short-term weakness is expected in 4Q25 due to ongoing softness in analytical life sciences and lower revenue from a key European semiconductor customer. As a result, FY25/26 profit estimates have been revised down.
- Despite near-term headwinds, management remains confident in Frencken’s long-term growth, with new manufacturing facilities planned in Singapore and the US to support continued expansion and recovery in the semiconductor industry.
- The company is still viewed as a top pick by Maybank, trading at a discount to local peers, and is expected to benefit from a broader industry upcycle.
- Frencken maintains a net cash balance sheet and strong cash flows, historically paying out 30% of earnings as dividends, providing resilience through market cycles.
- Major risks include further drops in demand, supply chain disruptions, and lower-than-expected dividends, but the company’s established customer relationships and diverse end-markets support its outlook.
- ESG assessment finds Frencken has an established framework and internal policies, but quantitative environmental disclosures could be improved; overall ESG score is below average.
- Key financials indicate moderate growth, strong liquidity, and a commitment to continued investment in capacity to capture future demand, particularly in semiconductors and industrial automation.
Above is an excerpt from a report by Maybank Research Pte Ltd. Clients of Maybank Research Pte Ltd can be the first to access the full report from the Maybank Research Pte Ltd website: https://www.maybank.com/investment-banking
