After revenue miss, will Frencken still recover?

Shareholders may expect a recovery in the second half of 2023.

Tech firm, Frencken, was faced with a revenue miss in the third quarter (Q3) of 2022, which declined 0.6% year-on-year to $195.3m.

To blame for the low revenue were the slower recovery in its automotive business and weaker Euro value, according to a brokerage report.

"Frencken's Q322 revenue of S$195.3m (-0.6% YoY) was 16.6% below our S$234.3m expectation," said CGS-CIMB.

Insights from CGS-CIMB also showed that they downgrade Frencken, with a target price cut to $0.95.

CGS-CIMB said the business environment may recover starting the second half of next year.

"Upside risks are a less severe slowdown in its semiconductor business segment, better cost controls, and greater concessions from customers on cost pass on by Frencken," said the capital markets firm.