UOB Kay Hian analyst Clement Ho has maintained his “buy” call on Frencken Group and raised his target price from $2.52 to $2.62 after its $14 million acquisition of aerospace and semiconductor focused company Avimac. 

In a Sept 15 report, Ho says that he believes this “bite-sized acquisition would help ramp up capacity expansion, particularly in the semiconductor segment, as well as to help the group gain access to new technologies and competencies.

Avimac was founded in 2018 by industry veteran Joe Lau, who was the founder of JEP Precision Engineering. The company is a subsidiary of JEP Holdings, now under UMS Holdings.

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