Frencken - Maybank Research 2025-03-12: Top Pick of Singapore Tech Stocks on Strong Semicon Sales

• Our channel checks show that Frencken (SGX:E28) is benefiting from strong orders from its semicon customers, especially its European customers.
• We expect orders to increase by 30% from this customer in 1H25 and 2H25 will likely be dependent on orders from its American customer. As a result, we believe the outlook for 1H25 to be stronger than we initially expected and will likely benefit more if the highly anticipated semicon recovery happens in 2H25.

Semicon sales likely to be stronger in 1H25

• - Read this at SGinvestors.io -
• From our channel checks, we believe Frencken is benefitting from more orders from its European customers and we expect sales from this customer to increase by 30% in 1H25. For 2H25E, we expect semicon sales to fare much better along with the expected semicon uplift, but we may have to wait until Apr/May’25 for more clarity.

Singapore potential expansion points to more growth

• - Read this at SGinvestors.io -
• In the US, a new facility will be inaugurated in 1H25. This will expand the US operation’s production capacity to support growth of the existing business and to capitalise on future opportunities.

Maintain BUY with a higher target price of S$1.34

• Read more at SGinvestors.io.

Jarick Seet Maybank Research | https://www.maybanktrade.com.sg/ 2025-03-12 SGinvestors.io

---