Frencken Group Limited (E28) AI Stock Analysis

• Market Cap: S$533.86M
• Dividend Yield: 2.67%
• Average Volume (3M): 2.99M
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.83
• Revenue Growth: 6.93%
• EPS Growth: 14.19%
• Country: SG
• Employees: 3,600
• Sector: Technology
• Sector Strength: 86
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.09
• Shares Outstanding: 427,090,420
• 10 Day Avg. Volume: 3,782,650
• 30 Day Avg. Volume: 2,987,616
• PEG Ratio: -0.54
• Price to Book (P/B): 1.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -84.53
• 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$1.38
• Price Target Upside: 8.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: S$1.00 ▼(-21.26%Downside)

Frencken Group Limited demonstrates solid financial performance, with strong revenue growth, profitability, and cash flow management contributing positively to its stock assessment. While technical indicators present a mixed view, the valuation appears reasonable. The overall score reflects a stable outlook, with financial strengths being a key factor.

Positive Factors

Earnings

Frencken's earnings showed a significant year-on-year increase, driven by revenue growth and gross margin improvement.

Revenue Growth

Revenue growth across the semiconductor and medical segments outperformed the industry, indicating strong segment performance.

Strategic Investments

Strategic investments and capacity expansion, including upgrading Singapore production facilities and opening a new US facility, are set to support growth.

Negative Factors

Automotive Segment

The automotive segment is anticipated to decline due to challenging conditions and higher costs amid the tariff situation.

Industrial Automation Segment

The industrial automation segment experienced a significant decline in revenue due to slower customer orders.

Valuation Concerns

Frencken's valuation is expected to decrease due to investor concerns about the earnings impact from the tariff situation.

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 primary business divisions. The Mechatronics division focuses on developing and supplying complex, high-precision mechanical and electronic components and systems to industries such as semiconductor, analytical, and industrial automation. This division earns money by providing custom-engineered solutions and high-value manufacturing services. The Integrated Manufacturing Services (IMS) division contributes to the company's earnings by offering a complete suite of integrated design and manufacturing services, catering to the automotive, healthcare, and consumer electronics sectors. Revenue is derived from long-term contracts and partnerships with key clients in these industries, ensuring a steady income stream through recurring business. Additionally, Frencken's global presence and strategic partnerships allow it to leverage its expertise and capabilities to maintain competitive pricing and high-quality standards, thus driving profitability.

Frencken Group Limited Financial Statement Overview

Summary

Frencken Group Limited exhibits robust financial performance characterized by steady revenue growth and improved profitability margins. The balance sheet is strong with prudent financial management, as evidenced by stable leverage and strong equity ratios. Cash flow generation is healthy, with a significant increase in free cash flow, enhancing liquidity.

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: Positive
• Last Price: 1.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:E28, the sentiment is Positive. The current price of 1.27 is above the 20-day moving average (MA) of 1.19, above the 50-day MA of 1.13, and above the 200-day MA of 1.12, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 69.91 is Neutral, neither overbought nor oversold. The STOCH value of 84.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:E28.

Frencken Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
E28	69 Neutral	S$533.86M	14.38	8.89%	2.67%	6.93%	14.19%
Sector *	63 Neutral	$33.61B	6.06	-11.53%	1.82%	5.53%	-18.79%
CSYJF		$321.09M	16.22	11.20%	3.72%	―	―
8AZ	79 Outperform	S$432.20M	6.13	20.62%	35.71%	-30.65%	-29.55%
JLB	64 Neutral	S$320.63M	28.90	8.66%	0.32%	43.32%	96.93%
MZH	61 Neutral	S$423.62M	55.08	2.02%	1.31%	15.39%	140.82%
AWX	55 Neutral	S$463.80M	40.71	2.40%	―	-20.96%	―

Frencken Group Limited Corporate Events

Frencken Group Limited Conducts Annual General Meeting

Frencken Group Limited held its Annual General Meeting at the Pan Pacific Hotel in Singapore, where key members of the board and the Chief Financial Officer were present. The meeting, which was attended by shareholders, proceeded with the requisite quorum and involved voting on resolutions by way of poll, with the Chairman acting as a proxy for some shareholders.

The most recent analyst rating on (SG:E28) stock is a Buy with a S$1.40 price target. To see the full list of analyst forecasts on Frencken Group Limited stock, see the SG:E28 Stock Forecast page.

Frencken Group Sees Robust Q1 Growth Driven by Semiconductor Segment

Frencken Group Limited reported an 11.5% year-on-year increase in revenue for the first quarter of 2025, reaching S$215.8 million, driven by strong performance in its Mechatronics Division, particularly in the semiconductor segment. The company’s net profit attributable to equity holders rose by 12.0% to S$10.0 million, with a gross profit margin improvement to 14.8%. The semiconductor segment saw a significant 33.7% revenue increase due to steady sales growth in Europe and a rebound in Asia, while the medical segment experienced a modest 1.2% growth. However, the industrial automation segment faced a decline due to changes in customer product demands.

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.