Broker: DBS Group Research
Date of Report: 20 May 2026
Excerpt from DBS Group Research report.
Report Summary
- Stock: Frencken Group Ltd (FRKN SP)
- Action: BUY (Maintained)
- Target Price: SGD3.76 (raised from SGD3.22)
- Key Idea: Frencken is well positioned to benefit from the ongoing recovery in the semiconductor sector, being a second-order AI beneficiary through its customers. The semiconductor segment accounted for about 49% of FY25 revenue, and is expected to drive growth with a strong upcycle projected into 2026 and 2027.
- Highlights:
- Revenue growth forecast: 2.1% for FY26F, 10.9% for FY27F.
- Earnings growth forecast: 5.0% for FY26F, 11.8% for FY27F.
- Capacity expansion in Malaysia and a new Singapore facility by 2027 will support medium-term growth, including new opportunities in aerospace and robotics.
- Sound financial position, with net cash and diversified portfolio supporting resilience.
- Stronger momentum expected in 2H26, driven by semiconductor upcycle and recovery in key segments.
- Valuation peg raised to 35x FY27F earnings, in line with global semiconductor peers due to its substantial (c.50%) exposure.
- Risks: Exposure to global market conditions; potential impact from broad economic slowdowns.
above is an excerpt from a report by DBS Group Research. Clients of DBS Group Research can be the first to access the full report from the DBS Group Research website : https://www.dbs.com.sg/
