Frencken Group (SGX: E28)
- Frencken Group weak 1Q22 earnings of S$12.8m (-12.6% yoy, +1.7% qoq) was impacted by rising cost pressures and disruptions in the automobile industry.
- We believe the global automobile industry will continue to be plagued by an extended period of slow production due to the semiconductor chip shortage and prolonged Russia-Ukraine conflict, which would negatively impact Frencken’s automobile segment.
Growth across most but the automobile segment
Frencken Group’s (Frencken) 1Q22 revenue of S$198.4m (+9.3% yoy) was led by growth from the semiconductor (+15.5% yoy), analytical & life sciences (+16.7% yoy) and industrial automation segments, while sales in the medical segment remained relatively stable. However, the automobile segment (-10.7% yoy) was impacted by constrained customer demand as a result of:- semiconductor chip supply chain challenges, and
- disruptions arising from the Russia-Ukraine conflict, which hosts assembly plants for automobile components
