Improved 2H showing forecast for Frontken Corp

Apex Securities Research expects Frontken to deliver better performance in 2H24, driven by seasonal factors and increased plant productivity.

PETALING JAYA: Frontken Corp Bhd, whose first-half (1H24) earnings missed analyst expectations due to a drop in operating margins, is expected to post a better performance in 2H24, with its growth trajectory still intact.

Phillip Capital Research said Frontken’s operating margins dropped by 1.6 percentage points (pp) in Taiwan, 1.2 pp in Singapore and 14.6 pp in Malaysia due to weaker oil and gas (O&G) revenue and front-loaded hiring costs.