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should test 1.60 soon
Frencken Group to see pick up in semiconductor-related orders in 2HFY2026, says Macquarie
Macquarie analysts Foo Zhiwei and Hanel Tan have initiated coverage on Frencken Group with an OUTPERFORM call and $1.76 target price, with a view that in the second half this year, the company will benefit from a pick up in semiconductor orders from its customers, who are in turn enjoying higher demand for their products driven by growing number of AI data centres. Citing estimates from Visible Alpha, Foo and Tan note that Frenckens key customer ASML is likely to see orders for its key EUV machines rise from 47 to 54 units.
We expect this to translate to more orders for Frencken, as ASML demands more parts to fulfil its order backlog, state the analysts in their Jan 16 note.
Frencken is likely to see stronger orders from its other customer segments. For one, the surge in demand for AI data centres means there is a growing need for storage capacity and as such, Frencken might see more industrial automation orders from its key customer in this segment, Seagate, whose capex is doubling from US$265 million in FY2025 to US$536 million in FY2027. In automotive, Frenckens customer Gapwaves could see demand for its automotive sensors inflect upwards as adoption finally takes root in 2026.
Foo and Tan point out that Frencken, despite a 9% FY2026 ROE, which is in line with the industry average, trades at a discount to its peer average of 19x PER. According to the analysts, by applying a PB-ROE regression, they see potential for Frencken to re-rate to at least 17x FY26E PER. Their $1.76 target price is based on 17x FY26E PER, which is +1.3SD to its average, justified by recovering semiconductor orders underpinning solid earnings growth.
Macquarie analysts Foo Zhiwei and Hanel Tan have initiated coverage on Frencken Group with an OUTPERFORM call and $1.76 target price, with a view that in the second half this year, the company will benefit from a pick up in semiconductor orders from its customers, who are in turn enjoying higher demand for their products driven by growing number of AI data centres. Citing estimates from Visible Alpha, Foo and Tan note that Frenckens key customer ASML is likely to see orders for its key EUV machines rise from 47 to 54 units.
We expect this to translate to more orders for Frencken, as ASML demands more parts to fulfil its order backlog, state the analysts in their Jan 16 note.
Frencken is likely to see stronger orders from its other customer segments. For one, the surge in demand for AI data centres means there is a growing need for storage capacity and as such, Frencken might see more industrial automation orders from its key customer in this segment, Seagate, whose capex is doubling from US$265 million in FY2025 to US$536 million in FY2027. In automotive, Frenckens customer Gapwaves could see demand for its automotive sensors inflect upwards as adoption finally takes root in 2026.
Foo and Tan point out that Frencken, despite a 9% FY2026 ROE, which is in line with the industry average, trades at a discount to its peer average of 19x PER. According to the analysts, by applying a PB-ROE regression, they see potential for Frencken to re-rate to at least 17x FY26E PER. Their $1.76 target price is based on 17x FY26E PER, which is +1.3SD to its average, justified by recovering semiconductor orders underpinning solid earnings growth.
ASML tops US$500 billion market cap as TSMC plans to spend more https://www.businesstimes.com.sg/companies-markets/telcos-media-tech/asml-tops-us500-billion-market-cap-tsmc-plans-spend-more
msksmsks ( Date: 15-Jan-2026 18:09) Posted:
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Pre mkt opening, ASML already showed new
52 wk high wl be created again.
Lets C tmr
52 wk high wl be created again.
Lets C tmr
Slow and steady.
msksmsks ( Date: 14-Jan-2026 08:37) Posted:
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A new 52 wk high was created again
last night by ASML but closed negative
partly due to profit taking and overbght
territory.
last night by ASML but closed negative
partly due to profit taking and overbght
territory.
Next , the target to achieve 1.55
💪 💪 💪 💪 👍 👍 👍 👍 👍 👍 👍
msksmsks ( Date: 13-Jan-2026 07:30) Posted:
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A new 52 wk high was created again
Last night by ASML sterling performances
Frencken wl catch up.
Last night by ASML sterling performances
Frencken wl catch up.
Gap 147 closed...next gap 152....huat to all....
Target 1.7 series.
Ok, it is catching up now...... the market starts to recognise the value of Frencken. 👍
Trainner ( Date: 12-Jan-2026 08:58) Posted:
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So how, Frencken has been lagging ASML and other semiconductor counters. However, it will catch up...... I am very hopeful.
msksmsks ( Date: 12-Jan-2026 08:55) Posted:
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ASML hit a new 52wk high last Fri.
Frencken been lagging far behind
Lets see whether can tango along
Frencken been lagging far behind
Lets see whether can tango along
The longer it stays abv 1.4 series.......it' s a buy signal
Letz C
Letz C
Frencken isn?t building capacity after orders. It is building ahead of next wave. The new Singapore site gives 3x ASML handling capacity. That?s not for 2026 earnings, that?s for the next leg of the semi upcycle. By the time utilisation shows up in the P&L, the stock won?t be cheap anymore.
Reminds me of Venture in its early build-up phase. Invest in capacity + capability first, earnings follow later. Back then, Venture looked ?expensive? before utilisation kicked in. Once customers scaled, operating leverage did the heavy lifting and the re-rating came fast. Frencken feels like that stage now,
capacity first, customer volume prepped later, margins + earnings inflection.
Reminds me of Venture in its early build-up phase. Invest in capacity + capability first, earnings follow later. Back then, Venture looked ?expensive? before utilisation kicked in. Once customers scaled, operating leverage did the heavy lifting and the re-rating came fast. Frencken feels like that stage now,
capacity first, customer volume prepped later, margins + earnings inflection.
Just want to clarify this point from the official announcement of the new Frencken Singapore site:
" Construction of the New Facility is slated to start in the third quarter of 2025 and complete in the first quarter of 2027. Upon completion, the relocation and consolidation of the Singapore mechatronics operations to the new site will be carried out in phases."
Therefore, impact to revenue will not be immediate in 1Q2027 as some time will be required for relocation and consolidation (with potentially some additional relocation costs incurred that may impact P& L). However, over the longer term, the new site is indeed a strong value proposition and a clear signal that the company is in growth mode.
Source: https://www.edb.gov.sg/en/about-edb/media-releases-publications/frencken-marks-groundbreaking-for-new-facility-in-singapore.html
" Construction of the New Facility is slated to start in the third quarter of 2025 and complete in the first quarter of 2027. Upon completion, the relocation and consolidation of the Singapore mechatronics operations to the new site will be carried out in phases."
Therefore, impact to revenue will not be immediate in 1Q2027 as some time will be required for relocation and consolidation (with potentially some additional relocation costs incurred that may impact P& L). However, over the longer term, the new site is indeed a strong value proposition and a clear signal that the company is in growth mode.
Source: https://www.edb.gov.sg/en/about-edb/media-releases-publications/frencken-marks-groundbreaking-for-new-facility-in-singapore.html
msksmsks ( Date: 07-Jan-2026 09:31) Posted:
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I am holding ...... strong..... 💪 💪 💪 💪 💪
msksmsks ( Date: 07-Jan-2026 09:31) Posted:
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Precisely, the chain effect wl be felt soon.
In addition, Once the new facility of Frencken comes
into operational 1Q27, it wl be able to handle 3X
more than current for ASML
In addition, Once the new facility of Frencken comes
into operational 1Q27, it wl be able to handle 3X
more than current for ASML
Trainner ( Date: 07-Jan-2026 09:21) Posted:
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ASML hits new 52 weeks high again last night. Semiconductor counters in US are doing very well last night. It is very bullish as of now, that should have positive impact on Frencken. Cheers~~~~