Broker: DBS Bank Ltd
Date of Report: 29 April 2026

Excerpt from DBS Bank Ltd report.

Report Summary

• Actionable Ideas & Top Picks:
  • UMS Integration – BUY, Target Price (TP): SGD 2.92
    • Strong customer-driven momentum and leverage to advanced packaging.
    • Earnings raised by 9-11% on strengthening orders from key customers and higher margin assumptions.
  • AEM Holdings – BUY, Target Price (TP): SGD 8.90
    • Most direct AI/HPC play with significant earnings uplift (+42-56%) and new customer contributions.
  • Frencken – BUY, Target Price (TP): SGD 3.22
    • More diversified exposure; TP raised but earnings unchanged. Least preferred due to lower semiconductor exposure (~50% of revenue) and more muted growth.
• Key Ideas:
  • Semiconductor upcycle is accelerating, driven by AI and memory demand, benefiting sector leaders and second-order beneficiaries.
  • Singapore tech stocks, especially UMS and AEM, offer attractive valuation versus global peers, with scope for further re-rating.
  • UMS is preferred for lower execution risk and strong growth visibility, while AEM offers the most direct AI/HPC upcycle exposure with higher execution risk.
  • Frencken provides diversified exposure, but with lower earnings growth and sector leverage.

Call to Action:

• Focus on UMS Integration (BUY, TP: SGD 2.92) and AEM Holdings (BUY, TP: SGD 8.90) for the strongest industry upcycle exposure and upside potential.
• Frencken (BUY, TP: SGD 3.22) is also rated positively but is less preferred.

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