CGS-CIMB analyst William Tng has reiterated their bullish stance on E28 stock, giving a Buy rating on July 25.
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William Tng has given his Buy rating due to a combination of factors that highlight Frencken Group Limited’s growth potential and strategic initiatives. The company is expanding its manufacturing capabilities in Singapore by developing a new facility at Kaki Bukit Avenue 5, which is expected to enhance its capacity and productivity, particularly in the Mechatronics segment. This expansion is aimed at supporting increased program transfers from European semiconductor and analytical life sciences customers, positioning Frencken to capitalize on growing demand.
Furthermore, William Tng notes that the company’s financial outlook remains positive, with anticipated revenue and net profit growth in the first half of 2025. The valuation of Frencken has been adjusted to reflect tariff-induced uncertainties, yet the expected demand driven by the Electronics Manufacturing Development Program (EMDP) is likely to boost valuations. The target price has been raised, and potential catalysts for re-rating include a faster recovery in the semiconductor business and improved cost management. However, risks such as cost escalation and demand weakening are acknowledged.
In another report released on July 25, DBS also maintained a Buy rating on the stock with a S$2.03 price target.