UOB Kay Hian has maintained its “buy” rating on Frencken Group with a target price of $1.37 on the expectation of a stronger 2H20 earnings for the company. 

Analyst Clement Ho has noted that demand for semiconductor components remains strong and said the semiconductor segment is estimated to contribute 32% and 35% of group sales for Frencken in FY20/21F respectively. 

This will be driven by the huge demand stemming from the accelerating development of 5G technology, reflected in the record capital expenditure (capex) spending by major foundries TSMC and Samsung in FY20/21

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