SEMICONDUCTOR player Frencken on Tuesday (Nov 19) reported a 29.3 per cent increase in profit to S$9.2 million for the three months ended Sep 30, from S$7.1 million the year before.
Revenue for the period was up 7.7 per cent at S$198.6 million, from S$184.4 million a year prior.
The increase in revenue was driven by higher contribution from Frencken’s mechatronics division, where revenue climbed 10.8 per cent to S$176.8 million in Q3 2024. The company attributed the increase to higher revenue contributions from its semiconductor, analytical life sciences and industrial automation segments.
The company’s integrated manufacturing services division, which provides integrated contract design and manufacturing services to automotive and office automation industries, saw its revenue drop 12.8 per cent year on year to S$21.1 million in Q3.
The drop was mainly the result of lower contributions from the automotive, and the consumer and industrial electronics segments, said the company.
For the nine months ended Sep 30, the group posted a revenue of S$571.3 million, up 6.7 per cent from a year ago. The increase was driven by better revenue performance of its mechatronics division, which offset softer sales from its integrated manufacturing services division.
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Its profit for the nine months ended Sep 30 rose 42.5 per cent to S$S$27.3 million, up from S$19.2 million in the corresponding period a year ago.
The company said that it is mindful of potential trade restrictions that could affect the business environment of technology companies. Nevertheless, it is positive on the longer-term outlook for the semiconductor industry.
The company is guiding for higher revenues in H2 2024, relative to H1 2024, barring unforeseen circumstances.
Shares of Frencken closed 1.7 per cent, or S$0.02, to close at S$1.20 on Tuesday before the release of the announcement.
