Frencken Group Limited (E28) AI Stock Analysis

• Market Cap: S$610.74M
• Dividend Yield: 1.86%
• Average Volume (3M): 4.31M
• Price to Earnings (P/E): 15.7
• Beta (1Y): 1.12
• Revenue Growth: 11.57%
• EPS Growth: 0.89%
• Country: SG
• Employees: 3,600
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.05
• Shares Outstanding: 427,090,420
• 10 Day Avg. Volume: 5,062,910
• 30 Day Avg. Volume: 4,312,060
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$1.92
• Price Target Upside: 37.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 65 Neutral
• Price Target: S$1.50 ▲(7.14% Upside)

Frencken Group Limited's overall stock score is driven by its strong financial performance, with consistent revenue growth and improved profitability margins. The technical analysis indicates some short-term weakness, but the valuation suggests the stock is fairly valued. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Profitability Margins

Improved profitability margins suggest effective cost control and operational efficiency, enhancing the company's financial health and competitiveness.

Cash Flow Management

Strong cash flow management enhances liquidity and financial flexibility, allowing for strategic investments and debt reduction, supporting sustainable growth.

Negative Factors

Short-term Stock Weakness

While not a long-term fundamental issue, short-term stock weakness can affect investor sentiment and capital raising efforts, potentially impacting strategic initiatives.

Lack of Recent Corporate Events

The absence of recent corporate events may suggest a lack of strategic initiatives or partnerships, potentially limiting growth opportunities and market visibility.

Earnings Call Data Absence

The lack of earnings call data may hinder transparency and investor communication, affecting stakeholder confidence and the ability to assess management's strategic vision.

Frencken Group Limited Business Overview & Revenue Model

Company Description

Frencken Group Limited, an investment holding company, provides original design, original equipment, and diversified integrated manufacturing solutions worldwide. It operates in two segments, Mechatronics and Integrated Manufacturing Services (IMS). The Mechatronics segment designs, develops, and produces precision-engineered systems and machines, electromechanical assemblies, and high precision parts and components for original equipment manufacturers in the healthcare, analytical and life sciences, semiconductor, and industrial automation markets. It also offers value engineering, prototyping, program machining components and sheet metal parts manufacturing, and modular and equipment system assembly, integration, testing, and commissioning; assembly, testing, designs, engineers, and manufactures mechatronic modules, products, and systems; and research, development, and engineering services. The IMS segment provides integrated contract design and manufacturing services to the automotive, and consumer and industrial electronics industries. This segment design, engineers, manufactures, and sells filters; manufactures mold and die, plastic products, and component sub-assembly; injection mold making and injection molding; manufactures and distributes plastic products; and designs and trades in micro-mechanical product components for automotive industry. The company also engages in the property holding activities; and provision of vacuum coating, thermal treatment, and other related services for plastic component. Frencken Group Limited was founded in 1995 and is based in George Town, Malaysia.

How the Company Makes Money

Frencken Group Limited generates revenue through its two main business segments: Mechatronics and Integrated Manufacturing Services (IMS). In the Mechatronics segment, the company designs and manufactures high precision systems and components for industries such as semiconductor and healthcare. This includes the production of semiconductor equipment, medical devices, and analytical instruments. In the IMS segment, Frencken provides integrated solutions that encompass product design, prototyping, and mass production, primarily for the automotive and consumer electronics markets. The company's earnings are significantly influenced by its ability to maintain strong relationships with key clients and partners, ensuring a consistent order flow and leveraging its global manufacturing footprint to optimize costs and deliver high-quality products. Additionally, strategic partnerships and collaborations help expand its technological capabilities and market reach, contributing to its revenue growth.

Frencken Group Limited Financial Statement Overview

Summary

Frencken Group Limited demonstrates strong financial performance with consistent revenue growth, improved profitability margins, and effective cash flow management. The balance sheet is stable with prudent financial management and strong equity.

Income Statement

Frencken Group Limited shows a solid revenue growth trajectory with a 6.93% increase from 2023 to 2024. Gross profit margin slightly increased, reflecting improved cost management. The net profit margin improved to 4.67%, indicating enhanced profitability. EBIT and EBITDA margins have also shown steady improvement, reflecting strong operational efficiency.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of 0.31, indicating reasonable leverage. The equity ratio of 59.02% reflects a robust capital structure. Return on equity remained stable, showing efficient use of equity capital. The decrease in total liabilities suggests effective debt management.

Cash Flow

Cash flow from operations is stable, while free cash flow increased significantly by 50% in 2024, indicating better cash management. The operating cash flow to net income ratio is 1.29, showcasing good cash generation relative to earnings. Free cash flow to net income ratio improved, further enhancing liquidity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	794.33M	742.86M	786.11M	767.07M	620.62M
Gross Profit	115.34M	98.00M	118.98M	128.91M	105.44M
EBITDA	83.44M	77.66M	95.32M	96.19M	75.96M
Net Income	37.12M	32.48M	51.87M	58.73M	42.57M
Balance Sheet
Total Assets	735.14M	735.29M	725.21M	688.14M	563.79M
Cash, Cash Equivalents and Short-Term Investments	159.20M	142.63M	166.99M	192.60M	174.45M
Total Debt	133.55M	142.03M	150.45M	119.44M	81.98M
Total Liabilities	297.64M	330.01M	328.79M	309.12M	227.51M
Stockholders Equity	433.96M	401.25M	391.89M	376.16M	333.95M
Cash Flow
Free Cash Flow	34.95M	23.29M	-4.77M	22.87M	55.85M
Operating Cash Flow	48.05M	48.96M	37.83M	40.37M	79.64M
Investing Cash Flow	-11.12M	-27.30M	-44.48M	-28.84M	-22.76M
Financing Cash Flow	-15.57M	-35.85M	-30.43M	-9.21M	-14.96M

Frencken Group Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.40
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:E28, the sentiment is Negative. The current price of 1.4 is below the 20-day moving average (MA) of 1.42, below the 50-day MA of 1.50, and above the 200-day MA of 1.20, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 41.36 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:E28.

Frencken Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8AZ	75 Outperform	513.24M	13.03	20.80%	16.54%	-50.75%	-61.46%
544	75 Outperform	511.54M	18.37	10.29%	3.23%	8.52%	-6.22%
E28	65 Neutral	S$610.74M	15.70	9.11%	1.86%	11.57%	0.89%
AWX	65 Neutral	567.21M	41.61	2.35%	―	4.60%	―
JLB	64 Neutral	318.93M	32.58	8.21%	0.32%	47.45%	51.05%
MZH	64 Neutral	511.61M	40.50	2.00%	0.84%	22.66%	83.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Frencken Group Limited Corporate Events

Frencken Group Breaks Ground on New Singapore Facility

Frencken Group Limited has initiated the development of a new manufacturing facility in Singapore, marking a significant step in expanding its Mechatronics operations. This strategic move is expected to enhance the company’s capabilities in delivering advanced solutions for the semiconductor and life sciences industries, reinforcing Singapore’s position as a key semiconductor hub and contributing to the growth of the technology manufacturing sector.

The most recent analyst rating on (SG:E28) stock is a Buy with a S$1.74 price target. To see the full list of analyst forecasts on Frencken Group Limited stock, see the SG:E28 Stock Forecast page.