The “worst is over” for supply chain Frencken Group Limited, says DBS Group Research, a day after the company posted a 4.9% dip y-o-y in earnings to $18.7 million for 1H2020. DBS Group Research analyst Ling Lee Keng is maintaining “buy” on the company with a raised target price of $1.43.

“The initial supply chain disruptions caused by the Covid-19 lockdown measures are largely resolved. At present, all the Group’s manufacturing sites in Asia, Europe and the US have resumed normal operations,” notes Ling in an August 14 note. 

“Demand is also gradually improving as Frencken expects higher or at least stable revenue in 2H2020 as compared to 1H20. Frencken’s strong presence across a wide variety of industries and business segments should help to provide resilience and stability to the Group,” she adds. 

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