SEMICONDUCTOR player Frencken on Wednesday (Aug 14) reported a 50.3 per cent increase in profit to S$18.1 million in H1 2024, from S$12.1 million in H1 2023.
Revenue for the period also rose 6.2 per cent to S$372.7 million from S$351 million a year prior. The increase was driven by better revenue performance in Frencken’s mechatronics division, which saw revenue climb 7.9 per cent to S$327.1 million in H1 2024 from S$303.2 million in H1 2023.
The increase from the mechatronics division was due to higher revenue contributions from the semiconductor, medical, analytical life sciences segments, which helped offset a fall from the industrial automation segment. The drop was due to a significant slowdown in orders from a key customer in data storage solutions.
The IMS division saw revenue dip 4.3 per cent to S$44.3 million in H1 2024 from S$46.3 million in H1 2023. This was driven by a decline in the automotive segment’s revenue, which was partially offset by the consumer and industrial electronics segment.
There is a risk that further trade restrictions between the US and China could raise the uncertainty in the business environment of technology companies. Frencken will continue to engage key customers in new products and work on existing projects amid this backdrop.
The company will continue to monitor the prevailing geopolitical tensions that could impact the business landscape. As yet, Frencken has not seen any significant changes to its programmes with customers.
The company is guiding for higher revenues for H2 2024 compared to H2 2023.
Shares of Frencken closed unchanged at S$1.39 on Wednesday.
