$Frencken (E28.SG)$ Downgrades by analysts. DBS cut tp from ...

$Frencken (E28.SG)$
Downgrades by analysts. DBS cut tp from 2.09 to 1.36. RHB cut tp from 2.10 to 1.24.
There's unrelenting margin pressure on the company, with margins declining to 15.4% in 1QFY2022 ending Mar compared to 17.3% last year. Net margins eased to 6.5%, down from 8.1% in 1QFY2021. This was due to continued supply chain issues, inflationary pressure, and investment for growth. Margin pressure is expected to persist at least in the near term. Costs are also higher due to higher prices of materials, freight, energy, and increased production overhead costs. Depreciation also surged. Net earnings forecasts are cut for FY2022 and FY2022 by 20% and 19% respectively.