RHB analyst Jarick Seet has maintained his “buy” call on Frencken Group with a higher target price of $1.37 from $1.22 previously.

This comes after the group announced, on Dec 21, that it would take an impairment loss of $6.2 million that’s associated with the development of a product in the healthcare industry due to a strategic direction change by its customer to not launch the product.

Frencken says the group expects to remain profitable in 2HFY2020 and FY2020 and that the impairment loss, which is a non-cash exceptional item, is not expected to have an impact on its cash balances.


To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook