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This undervalued tech stock is steadily growing its margins

Michelle Zhu
Michelle Zhu • 2 min read
This undervalued tech stock is steadily growing its margins
SINGAPORE (Aug 16): KGI Securities is reiterating its “buy” recommendation on Frencken Group, formerly known as ElectroTech Investments, while raising its target price estimate to 72 cents from 63 cents previously.
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SINGAPORE (Aug 16): KGI Securities is reiterating its “buy” recommendation on Frencken Group, formerly known as ElectroTech Investments, while raising its target price estimate to 72 cents from 63 cents previously.

Frencken, a provider of capital and consumer equipment services, recently saw its 2Q net profit grow 62% y-o-y to $6.6 million.

This was mainly driven by a jump in sales from its semiconductor business segment and improving gross margins on better capacity utilisation, as well as a shift of its business to its higher-margin mechatronics division, recalls analyst Joel Ng in a report issued on Tuesday.

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