Frontken Posts Slight Miss in 3Q25 but Eyes Record FY26 Earnings on Capacity Expansion

Frontken

KUALA LUMPUR: Frontken Corporation Bhd posted a slightly weaker third-quarter performance, with core net profit at RM41.6 million, down 21% quarter-on-quarter but up 16% year-on-year. This brought its nine-month FY25 profit to RM124.6 million, a 32% increase year-on-year — slightly below internal expectations but in line with market forecasts.

The lower quarterly earnings were attributed to higher overheads, including staff incentive accruals, increased headcount, and relocation expenses for transferring TFT/LCD cleaning lines from P1 to P3. Management expects these costs to ease in 4Q25, supporting sequential earnings recovery.

Frontken Posts Slight Miss

Looking ahead, Frontken remains upbeat on FY26 as new advanced cleaning lines in P2 and P1 are expected to boost revenue and margins, backed by robust demand from key foundry customers ramping up 2nm process nodes.

The group is also exploring several M&A opportunities in the United States to strengthen its foothold in the precision cleaning market. With a strong net cash position of RM567 million and potential RM2 billion from warrant conversions, Frontken is well positioned to fund expansion.

Analysts maintained a BUY rating with an unchanged target price of RM5.18, based on 38x FY26 earnings.

Business News