Frencken Q3 profit rises 7.5% to S$9.9 million, expects marginally lower revenue in H2

[SINGAPORE] Semiconductor player Frencken posted a 7.5 per cent rise in net profit for its third quarter ended Sep 30 to S$9.9 million from S$9.2 million in the previous corresponding period.

This was mainly attributed to a change in sales mix, the group said in a regulatory filing on Monday (Nov 17).

Revenue for Q3 rose 6.5 per cent to S$211.5 million from S$198.6 million in the previous corresponding period.

This was primarily on the back of higher contributions from the mechatronics division, lifted by higher revenue contributions from the semiconductor, medical and industrial automation segments, which offset softer revenue from the analytical life sciences segment.

The semiconductor segment’s revenue increased 8.1 per cent year on year to S$99.1 million. This was driven mainly by higher sales from its Asia operations, which benefited from a broader product portfolio and a recovery in demand in certain segments of the semiconductor equipment sector, Frencken said.

Revenue from the medical segment improved 6.2 per cent on the year to S$31.7 million, due mainly to increased customer orders in Asia.

Industrial automation’s revenue rose 51.1 per cent to S$13.5 million, due to increased orders from a key customer in data storage solutions.

Revenue from the analytical life sciences segment, however, declined 8.3 per cent to S$41 million for Q3, attributed primarily to lower customer demand in Europe.

“End-market conditions were affected mainly by reduced expenditure from the semiconductor market, the cut in government funding for research in the US, and trade challenges which undermined a key customer’s market demand in China,” Frencken said.

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For the nine months ended Sep 30, net profit was up 9.1 per cent at S$29.8 million, while revenue rose 12.5 per cent to S$642.8 million.

Looking ahead, Frencken expects the near-term operating landscape to remain challenging.

Frencken said that while its key mechatronics operations in Asia were able to enjoy continued recovery in revenue for its semiconductor business, the growth may not be sufficient to fully offset the short-term market softness of the analytical life sciences business in Europe this year.

“The volatile geopolitical tensions continue to cast uncertainties on the outlook of the global economy, as the prolonged unpredictability of tariffs weighs on business confidence and investment decisions,” the group added.

The potential fallout on global trade and market demand, supply chain disruptions, inflation and foreign currency market volatility is leading the group to anticipate revenue for the second half of 2025 to be marginally lower than the first half.

Still, it expects revenue growth for FY2025 over FY2024.

Shares of Frencken closed at S$1.54, S$0.05 or 3.1 per cent down on Friday.