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.
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.
