Analyst William Tng of CGS-CIMB reiterated a Buy rating on Frencken Group Limited, with a price target of S$1.72.
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William Tng has given his Buy rating due to a combination of factors that highlight Frencken Group Limited’s potential for long-term growth despite some short-term challenges. The company’s revenue for the first nine months of 2025 showed a significant year-on-year increase, primarily driven by strong performance in the mechatronics segment. Although the net profit was slightly below expectations due to a decrease in gross margin, it still aligned with market consensus.
Despite a cautious outlook from management regarding geopolitical tensions and economic uncertainties, Frencken’s semiconductor business in Asia has shown signs of recovery. William Tng remains optimistic about the company’s long-term prospects, particularly in the semiconductor segment, which is expected to support earnings growth in the coming years. The target price has been adjusted to reflect potential short-term demand slowdowns, but the overall positive outlook and potential catalysts such as new consumer products and improved cost management justify the Buy rating.
In another report released today, DBS also maintained a Buy rating on the stock with a S$1.92 price target.