Frencken Group Likely Entering Stronger Growth Phase as Demand Rises

Dow Jones08-14

0713 GMT - Frencken Group appears to be entering a stronger growth phase, with a potentially stronger 2H performance likely to extend into 2027, says DBS Group Research's Lee Keng Ling in a note. The Singapore semiconductor-tool maker's 2Q profit gained 12% on year due to stronger demand for semiconductors, medical equipment and industrial automation, she says. The company's outlook is growing brighter as customer demand strengthens amid the rising semiconductor cycle, the analyst adds. Capacity expansion, organic growth and selective merger-and-acquisition deals should push Frencken to reach its 1.0 billion Singapore dollar revenue target by 2028 or earlier, she adds. DBS maintains its buy rating and S$3.76 target price. Shares are down 5.7% at S$2.63.

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