Frencken    Last:2.92    -0.08

New phases new horizons, aim $3 by 2022

Acquisition announced today! Tomorrow will fly!!!

 

Finally a BILLION dollar company! Congrats to all long-term holders!

 

Buy on dips. Nasdaq very strong!

 

frencken 5m
w5 hit 242

wa dn 235
wb up 239
see if wb up can hit or breakup

if cannot wc dn 232

 

Frencken corrected down now?

SgYuan      ( Date: 31-Aug-2021 09:00) Posted: frencken week w3 is a supper bull run up fast and already almost 238.2% 244 still at w3 fib up w4 may not correct so much

 

frencken week
w3 is a supper bull run
up fast and already almost 238.2% 244
still at w3 fib up

w4 may not correct so much

 

frencken day
w5 239 px hit 240
see next fibs 247 252

 

Its a gift which keeps giving

 

Re-rating again?

 

moving now

 

From UOB Kay Hian, for reference only
Trading Buy Range: S$2.26-2.27
Last price: S$2.23
Target price: S$2.53
Protective stop: S$2.12
This is a strong and bullish stock as the price
has been trading far above the cloud. There is
a bullish conversion and base line crossover
that hint for a potential upside. The price is
consolidating within a pennant pattern. The
MACD is strong and bullish as well. We are
likely to see the price resuming its upward
momentum to move higher.
The potential upside target is S$2.53. Stops
could be placed at S$2.12.
Approximate timeframe on average: 1-2 weeks
(initiate this trade idea if the stock hits the
entry price range within three trading days)
Our institutional research has a fundamental
BUY and target price of S$2.52.

 

Ya amd nvidia cheong on fri, tmr sg tech stocks prepare engine..

gslgsl      ( Date: 29-Aug-2021 12:53) Posted: Look like going to cheong tomorrow.

 

Look like going to cheong tomorrow.

 

Looks like got chance next week.. holding well during weak market

 

Firm, but, seems like only retail investors are buying and selling? DYODD

 

Analysts up Frencken Group' s TP to at least $2.49 on strong growth in semiconductor business

Analysts from CGS-CIMB Research, Maybank Kim Eng and UOB Kay Hian are positive on Frencken Group, with maintained " add" and " buy" calls.

The optimism on the counter comes as the group reported a strong set of results for the 2QFY2021 and 1HFY2021 ended June.

Revenue for the 2QFY2021 grew 35.4% y-o-y to $191.1 million, while 1HFY2021 revenue increased 28.3% y-o-y to $375.3 million.

CGS-CIMB analyst William Tng has increased his target price on the counter to $2.49 from $2.34 previously.

This is based on the current FY2022 sector average price-to-earnings (P/E) of 15.0 times for tech stocks under the brokerage' s coverage (previously 15.3 times).

He has also upped his revenue estimates for FY2021 to FY2023 by 6.1-7.6%, and core earnings per share (EPS) to 6.8-12.4% for the same period.

The higher revenue and EPS estimates come as demand remains strong for most of Frencken' s business segments, writes Tng in an Aug 16 report.

Frencken' s 1HFY2021 revenue stood in line with his expectations at 51.0% of his FY2021 estimates. Net profit for the same period surpassed Tng' s expectations at 52% of his FY2021 forecast. The group' s net profit also beat consensus' estimates at 57% of its FY2021 forecast.

To Tng, re-rating catalysts include new customer wins and stronger-than-expected sales in the semiconductor and industrial automation segments.

Downside risks include supply chain disruptions from new Covid-19 variants, he adds.

Maybank Kim Eng analyst Lai Gene Lih has raised his target price to $2.63 from $2.00 previously as he raises his EPS estimates by 6-15% for FY2021 to FY2023.

His new target price is based on 15.5 times FY2022 P/E, from 14.5 times FY2021 P/E, he writes in an Aug 16 report.

The higher target price is due to moderated cyclicality risks and an ongoing margin expansion trend.

That said, his target multiple of 15.5 times is slightly higher over Singapore-listed tech peers at an average of 13.9 times.

" We believe this is warranted as Frencken has executed well on earnings and margin expansion in recent years," he writes.

" Moreover, we see reduced cyclicality as we expect semiconductor strength to be sustained in the next one to two years, while other end-markets continue their post-Covid-19 recovery," he adds. " Key upside to our forecast is if there is lumpy capex from IA customer Seagate."

To him, Frencken' s earnings, or PATMI at $31.3 million surpassed his estimates, as well as that of the consensus.

According to Frencken, revenue for the 2HFY2021 is likely to be " moderately stronger" than the figure posted in the 1HFY2021, as it expects semiconductor and automotive to be stable h-o-h.

Stronger-than-expected semiconductor and industrial automation contributions, robust margin accretion from new products and improving efficiencies, as well as an improving institutional interest are upside swing factors for Frencken, says Lai.

Meanwhile, an erosion in revenue resilience, supply chain disruptions and a lower-than-expected dividend pay-out could be downside factors for the stock.

Finally, UOB Kay Hian analyst Clement Ho has raised his target price on Frencken to $2.52 from $2.13 previously.

His new target price is pegged to 16 times FY2022 P/E, slightly above +2 s.d. with a three-year historical average of 15.1 times.

" Valuation at the current price of 13.7 times FY2022 P/E implies a 28% discount to the blended average P/E range of Frencken' s key customers of 19.1 times," he writes in an Aug 24 report.

Like the previous analysts, Ho deems Frencken' s 2QFY2021 results as a " strong beat" with earnings of $16.6 million.

Net profit for the 1HFY2021 currently stands at 63% of Ho' s FY2021 estimate.

According to the analyst, the strong demand in the semiconductor segment is expected to continue into the FY2022.

To this end, he has also upped his revenue estimates for the FY2021 and FY2022 by 5.6% and 6.5% to $746.7 million and $808.9 million respectively.

The raised estimates came from " tweaking our previous 2021 revenue growth assumptions for the semiconductor segment from +28.4% to +56%, a y-o-y contraction in revenue for the industrial automation segment from +18.3% to -8%, and sales growth for the automobile segment from -9% to +16%, in line with management guidance," writes Ho.

Accordingly, his net profit estimates have increased by 20.5% and 20.3% y-o-y to $60.1 million and $67.1 million for the FY2021 and FY2022 respectively.

" We believe Frencken' s valuation is supported by its strong forward earnings compound annual growth rate (CAGR) of 24% over FY2020-2023," he says.

As at 12.17pm, shares in Frencken are trading 4 cents higher or 1.84% up at $2.21, or FY2021 P/B of 2.4 times with a dividend yield of 2.0%, according to UOB Kay Hian' s estimates.

 

Maybank KE says too early to switch out of chip-shortage beneficiaries

Maybank Kim Eng (MKE) said on Tuesday that it continues to prefer chip-shortage beneficiaries over contract manufacturers with diverse end markets, as chip shortages still appear to be a key earnings risk for the manufacturers.

The research team has yet to see a rotation from Frencken or UMS into contract manufacturers like Venture, Aztech and Valuetronics, suggesting a " wait-and-see" attitude from investors waiting for catalysts to manifest, said its report on the Singapore technology sector.

MKE said it continues to be positive on the sector on the back of robust end-demand. Chip-shortage beneficiaries include UMS Holdings, Frencken Group and AEM Holdings the contract manufacturers highlighted were Aztech Global, Venture Corporation and Valuetronics.

The research team' s top picks are UMS and Frencken on a three- to six-month horizon. The research team continues to see the potential for both companies to surprise in the next one to two quarters, on the back of " still-strong" demand momentum from their customers.

For the past month, UMS has been on the uptrend it then dipped slightly to S$1.69 as at 3.03pm on Tuesday. The counter was trading 3.1 per cent or S$0.05 higher at the time.

Frencken, on the other hand, has been rising steadily in the same period. Its counter was trading 3.7 per cent or S$0.08 higher at S$2.24 as at 3.30pm on Tuesday.

In a separate report on Tuesday, UOB Kay Hian maintained its " buy" call on Frencken and increased its target price on S$2.52, pegged to 16 times the research team' s estimates for FY2020' s earnings, or slightly above the three-year historical average of 15.1 times.

UOBKH noted that the strong demand outlook in the semiconductor segment is expected to remain through to 2022.

On a 12-month horizon, MKE' s top picks are AEM Holdings and Venture Corporation. It favours AEM as it expects the company to enter into a new earnings cycle, aided by new products and customers and cyclical factors favouring increasing expenditure on test equipment.

The electronic-services provider has also reiterated that new-generation tools for key customer Intel will undergo mass production in late Q3 2021 through 2022. Thus, it expects H2 2021 update to be strong, following transitory weakness in the first half of 2021.

AEM' s share price has eased in the past month from a closing price of S$4.05 on July 26 to S$3.98 as at 3.30pm on Tuesday. The counter has underperformed in the year to date, with a steep correction in May, particularly driven by guidance that disappointed the market, MKE said.

Venture has edged up the past month. Its shares were trading 0.3 per cent or S$0.05 lower to S$19.16 as at 3.30pm on Tuesday.

The technology-services provider remains optimistic about its demand outlook for the next 12 months. Broad-based strength is observed across seven domains, with the exception of financial technology. Its life science and medical technology customers are benefiting from strong pharmaceutical and biotech end-markets amid the pandemic.


 

 

Super strong. Shd break 52 week high today or tomorrow.

 

From UOB Kay Hian, for reference only:
Frencken&rsquo s 2Q21 results were a strong beat with earnings of S$16.6m (+80.2% yoy),
bringing 1H21 net profit to 63% of our full-year estimate. Revenue for the semiconductor
segment (+62.1%) was led by strong demand for front- and back-end equipment,
contributing to positive operating leverage. The strong demand outlook in the
semiconductor segment is expected to remain through to 2022. Maintain BUY and
increase target price to S$2.52.

 

Look like going for another round of uptrend.