CGS-CIMB Research analyst William Tng has raised his target price for Frencken Group to $2.34, up from $1.87 previously, ahead of its 1HFY2021 ended June results announcement on August 12.

In an August 4 research note, he reiterates his “add” call for the counter. His higher target price is underpinned by an earnings upgrade as well as a higher FY2022 sector average P/E of 15.3 times, up from 13.5 times previously; to which his target price is pegged. 

Tng believes Frencken could see 2QFY2021 net profit growth of 62.7% y-o-y, given the strong performance of the semiconductor industry. He anticipates a 50:50 core net profit split between the 1H and 2H for the FY2021, a departure from the historical average split of 60:40.

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