Singapore-listed Frencken Group, a global integrated technology solutions company, reported a 10% year-on-year increase in earnings for the first half of 2025, reaching $14.6m (S$20m). The company’s revenue grew by 16% compared to the previous year, bolstered by strong performances in the semiconductor and medical segments. Despite a decline in the analytical life sciences sector, Frencken anticipates stable revenue for the second half of 2025, with expectations of growth in industrial automation.
The company’s semiconductor segment saw a 38% year-on-year increase, attributed to steady growth from a key European customer and a rebound in Asian sales. However, the analytical life sciences and automotive segments experienced revenue declines of 4% and 14% respectively, due to lower demand and uncertain market conditions in Europe.
Frencken is optimistic about its long-term growth, focusing on sustainable expansion through strategic initiatives. The company is developing larger manufacturing facilities in the US and Singapore, with the latter’s construction having commenced on 12 August 2025. This expansion aims to enhance Frencken’s competitiveness and support the growth of its mechatronics operations.
UOB Kay Hian Research maintains a “Buy” recommendation for Frencken, with a target price of $1.52 (S$2.08), reflecting a 40.5% upside potential. The recommendation is based on Frencken’s ability to outperform peers through its local-for-local manufacturing capabilities and diversified geographical facilities. Looking ahead, the company remains confident in its growth prospects, driven by higher factory utilisation rates and improved cost management.
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