CGS-CIMB analyst William Tng reiterated a Buy rating on Frencken Group Limited on August 15 and set a price target of S$2.06.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
William Tng has given his Buy rating due to a combination of factors including Frencken Group Limited’s strong financial performance in the first half of 2025. The company reported a 15.7% year-on-year increase in revenue to S$431.4 million and a 9.9% rise in net profit to S$19.9 million, both of which exceeded expectations. This robust performance was primarily driven by the semiconductor segment, which accounted for 50% of the first half’s revenue, up from 40% in the previous year.
Despite uncertainties in the global market, such as potential tariff impacts and geopolitical tensions, Frencken is expected to maintain a stable performance in the second half of 2025. The company anticipates steady growth in its Semiconductor, Medical, and Automotive segments, with the Industrial Automation segment projected to experience higher growth. The positive outlook for the semiconductor segment is expected to contribute to a 6-13% growth in core EPS from FY25 to FY27, supporting the Buy rating. Potential catalysts for re-rating include a faster recovery in the semiconductor business, improved cost controls, and better customer concessions on cost pass-throughs.
Tng covers the Technology sector, focusing on stocks such as Frencken Group Limited, Venture, and Aztech Global Ltd.. According to TipRanks, Tng has an average return of 11.6% and a 67.74% success rate on recommended stocks.
In another report released on August 15, DBS also maintained a Buy rating on the stock with a S$2.03 price target.