“This presents a significant growth opportunity for the broader semiconductor market, including key players like Frencken. In its 1QFY2024 update [ended March 31], Frencken demonstrated ongoing recovery with revenue and net profit reaching $193.6 million and $9 million, respectively, marking a 12% and 73% y-oy increase,” writes Tan.
Analyst Donovan Tan of OCBC Investment Research has initiated “buy” on Frencken Group (SGX:E28
) . He has also given the group a fair value (FV) of $1.74.
Tan notes that due to the semiconductor (semicon) industry’s “cyclical” nature, it has begun to “show signs” of an uptick since 3QFY2023, which he attributes to advancements in artificial intelligence (AI) solutions.
