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2341-2360 of 3013
not enough..to boost share price
Joelton ( Date: 23-May-2022 09:43) Posted:
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Frencken Group
On May 19, Frencken Group : E28 +2.61% non-executive non-independent chairman Gooi Soon Chai acquired 200,000 shares of the company at S$1.15 per share. With a consideration of S$230,000, this took his total interest in the integrated technology solutions company from 23.48 per cent to 23.53 per cent.
It followed his acquisition of 50,000 shares on Mar 11 at S$1.53 per share. He was appointed the group&rsquo s chairman in August 2016.
Also, on May 19, Frencken Group president and executive director Dennis Au acquired 200,000 shares of the company at S$1.16 per share. This took his interest from 0.89 per cent to 0.94 per cent. His preceding acquisitions were between Mar 7 and 8, with 150,000 shares acquired at S$1.52 per share.
Frencken down as much as 10.3% after release of Q1 results
SHARES of Frencken Group : E28 -8.73% fell in the morning trading session on Thursday (May 19), after it posted a 12.6 per cent decline in its first-quarter net profit.
The counter traded as low as S$1.13 as at 1.22 pm, down 10.3 per cent or S$0.13.
No married deals were recorded, according to ShareInvestor data.
The stock price recovered slightly to S$1.14 as at 4.15 pm, down S$0.12 or 9.5 per cent. The counter was actively traded, with 10 million shares worth S$11.6 million changing hands. It ended the day S$0.11 or 8.7 per cent lower at $1.15.
In a business update on Tuesday, the mainboard-listed technology-solutions provider said its net profit fell 12.6 per cent year on year to S$12.8 million in Q1 due to higher costs and heightened supply-chain challenges in the second half of FY2021.
Meanwhile, revenue was up 9.3 per cent on year to S$198.4 million, driven primarily by double-digit sales of the group&rsquo s mechatronics division.
DBS Group Research on Thursday downgraded its call on Frencken to &ldquo hold&rdquo from &ldquo buy&rdquo , and lowered its target price to S$1.36 from S$2.09 on weak margins.
Anticipating margin pressures to persist in the near term, analyst Ling Lee Keng reduced her earnings projections for FY2022 and FY2023 by about 20 per cent each.
&ldquo In the past few years, Frencken has demonstrated its ability to improve net margins from the various operational initiatives in place, including a rationalisation exercise and improvement in productivity,&rdquo said Ling.
CGS-CIMB on Wednesday also cut its target price to S$1.77 from S$2.06, as it reduced its earnings per share (EPS) forecast to factor in inflationary cost pressures reflected in Q1 2022 margins. It maintained an &ldquo add&rdquo call on the counter.
The brokerage adjusted down its EPS forecasts by 8.3 per cent in FY2022 and 14.3 per cent in FY2024 by varying its gross profit margin assumptions.
It also reduced its gross profit margin assumptions to factor in inflationary cost pressures, although it expects Frencken can pass on costs and move some of its business to projects that can provide better margins.
Maybank lowered its target price to S$1.80 from S$2.47, and maintained its &ldquo buy&rdquo call on the counter, in a report on Wednesday.
Analyst Lai Gene Lih now expects Frencken will trade at 14 times the brokerage&rsquo s estimates for FY2022 earnings amid cost headwinds, instead of his original target multiple of 15.5 times.
However, he believes that cost pressures from supply-chain challenges may potentially ease in the second half of the year if Frencken decides to pass on higher costs to customers.
The easing of Covid-19 measures in China should also benefit revenue and margins too, said Lai.
Never underestimate how low a stock can go. If funds attack u. Can be like Luna
Don?t think it will go lower than it?s NAV $0.80
Singpost ( Date: 19-May-2022 14:22) Posted:
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60 ct
almost same price with UMS
forced selling likely to take place.. never try to catch a bottom..can go to 90 cents..
Seriously oversold
exactly.. jia lat man..doesnt seem to be recovering at all..
wehuattogether88 ( Date: 19-May-2022 09:28) Posted:
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Frencken drop like a stone none stop.
Revenue is growing and management already highlight that 1H22 will be higher than 2H21.. current price is getting more attractive, DCA if you can.. I will only worried if the revenue is decreasing.. vested cheers
TraderBen ( Date: 18-May-2022 16:47) Posted:
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frencken is fked...
Joelton ( Date: 18-May-2022 09:50) Posted:
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Frencken Q1 net profit dips 12.6 per cent on higher costs
FRENCKEN Group&rsquo s : E28 +1.53% : E28 +1.53%net profit fell 12.6 per cent year-on-year to S$12.8 million in Q1 due to higher costs and heightened supply chain challenges in the second half of FY2021.
&ldquo Higher prices of materials, freight and energy in 1QFY22 compared to 1QFY21 have driven up input costs and the group is working on cost mitigation actions,&rdquo the mainboard-listed company said in a business update on Tuesday (May 17).
Revenue went up 9.3 per cent year-on-year to S$198.4 million, driven primarily by double digit sales of the group&rsquo s mechatronics division, which accounted for 87.1 per cent of the manufacturer&rsquo s revenue in Q1.
Gross profit eased 2.5 per cent year on year to S$30.5 million in Q1, while gross profit margin fell 1.9 percentage points to 15.4 per cent. Frencken attributed this to rising raw material prices amid supply chain disruptions and increased production overhead costs.
Frencken said it expects supply chain pressures to show signs of easing from the second half of this year as it works on mitigating cost inflation through operational initiatives.
The group added that it has made &ldquo significant capital investments&rdquo in FY2021 to add capacity and enhance capabilities as well as expand its pool of skilled workers.
&ldquo These investments for the future will see increased costs in the interim as the group sets up and qualifies new facilities to grow potential revenue drivers,&rdquo said Frencken.
Barring any unforeseen circumstances or deterioration in the business environment, the manufacturer expects a &ldquo moderate increase&rdquo in its revenue for 1H22 as compared to 2H21.
Accumulate when it is weak :)
Directors have bought as high as $2. Relax, they believe in the company. This is a long-term play. Potential acquisition target as well given that it is so cheap.
my goodess.. even such in line results not being able to move this counter while the NASdaq rallied.. its doomed alrdy.. so when nasdaq pulled back.. this likely will head to $1 or below
TraderBen ( Date: 17-May-2022 23:55) Posted:
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This company is well diversified in their products. Now with material price increase. Margin has gone very low. They should hv passed on the cost to the customers.
More or less expected.. Inflation, war and semiconductor shortage impart the company but nevertheless quite resilient in today climate.. hopefully the expansion can grew the revenue further in the future..
PQTPQK ( Date: 17-May-2022 19:32) Posted:
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Within expectations?
crouchingtiger ( Date: 17-May-2022 18:38) Posted:
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