Look forward to stronger 2QFY2021 numbers for technology solutions company Frencken Group and its semiconductor segment, says RHB Group Research analyst Jarick Seet. 

In a July 14 note, Seet is maintaining “buy” on Frencken Group, with a target price of $2.02, which represents a 12% upside. 

“We expect higher revenue contributions ahead from Frencken’s semiconductor segment. This lifts our FY2021F PATMI by 6% which, in turn, results in a higher target price that is pegged to 15.2x FY2021F price-to-earnings ratio (P/E). We remain confident that the company will enjoy an excellent FY2021F, as it should continue to be a major proxy to the growth of listed chipmakers in Singapore. 2QFY2021 may also bring a positive catalyst — which should trigger a positive re-rating for the stock,” writes Seet. 

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