Frencken Group (E28) H2 2024 earnings summary

Executive summary

• Achieved 6.9% revenue growth to S$794.3 million and 14.3% increase in net profit to S$37.1 million for FY2024, driven by strong Mechatronics Division performance and semiconductor segment rebound.

• Maintained robust financial position with net cash of S$72.6 million and shareholders’ equity of S$434.0 million.

• Recommended a final dividend of 2.61 cents per share, maintaining a payout ratio of at least 30% of PATMI.

Financial highlights

• Revenue rose to S$794.3 million from S$742.9 million year-over-year; gross profit margin improved to 14.5% from 13.2%.

• Net profit attributable to equity holders increased to S$37.1 million (up from S$32.5 million); EPS rose to 8.7 cents.

• Net cash position improved 43.5% to S$72.6 million; total assets stable at S$735.1 million.

• Dividend per share increased to 2.61 cents; net asset value per share at 101.6 cents.

Outlook and guidance

• Cautiously optimistic for FY2025 amid global economic and geopolitical uncertainties.

• Mechatronics Division expected to benefit from semiconductor industry recovery and new program launches.

• IMS Division faces near-term challenges due to weak automotive sector but is exploring diversification and operational consolidation.