Frencken Group posts higher earnings of $19.9 mil for 1HFY2025 from semiconductor sales growth in Europe and Asia

The group, which has two principal business segments, mechatronics and integrated manufacturing services (IMS), and another segment which includes an investment in a property holding company.

The group’s mechatronics division’s revenue grew 19.0% y-o-y to $389.3 million in 1HFY2025, driven mainly by higher revenue contributions from the semiconductor, medical and industrial automation segments.

For 1HFY2025, the semiconductor segment’s revenue jumped 37.5% to $215.7 million, attributed mainly to stable sales growth to a key customer in Europe and a rebound in sales from the Asia operations.

The group’s operations in Asia benefited from a broader product portfolio and a recovery in demand in certain segments of the semiconductor equipment sector.

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The medical segment’s revenue increased by 3.3% to $64.1 million in 1HFY2025, driven primarily by higher customer orders in Asia.

The analytical life sciences segment’s revenue declined 3.7% to $87.2 million in 1HFY2025 due to lower customer demand in Europe amid uncertain market conditions.

The industrial automation segment registered higher revenue of $16.8 million in 1HFY2025, up 19.5% y-o-y, mainly from increased orders from a key customer in data storage solutions.

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Meanwhile, the group’s IMS division’s revenue declined 8.4% y-o-y to $40.6 million in 1HFY2025, due mainly to lower contributions from the automotive, as well as consumer and industrial electronics segments.

In terms of revenue breakdown by business segments, the semiconductor segment accounted for 50.0% of group revenue in 1HFY2025. Analytical life sciences and medical segments contributed 20.2% and 14.9% respectively, while the industrial automation and automotive segments each made up 3.9% and 6.8% of revenue in 1HFY2025.

Total assets stood at $722.4 million as at June 30, and the group generated net cash of $21.9 million from operating activities in 1HFY2025.

The group recorded a decrease in cash and cash equivalents of $3.5 million in 1HFY2025 due to financing activities, repayment of dividends and repayment of borrowings and lease liabilities. Cash balances stood at $110.6 million as at end June.

Shares in Frencken closed 5 cents lower or 3.145% down at $1.54 on Aug 14.