| UOB KAYHIAN | UOB KAYHIAN |
|
Frencken Group (FRKN SP) Upward Re-rating To Continue On Structural Improvement
We believe the continued uptick in factory utilisation rates is sustainable, supported by strong demand seen by key clients of Frencken, including industry heavyweight ASML Holding. Revenue is expected to continue growing 7.4-13.8% over 2021-23, translating to a 3-year earnings CAGR of 15.5% on the back of positive operating leverage. We see bright spots emerging in the industrial automation segment. Maintain BUY with a higher target price of S$2.13.
|
Banking – Malaysia Digitalisation, Here We Come
As the deadline for the submission for digital banking licences looms, we understand that most traditional banks are opting not to participate. We opine that the entry of digital banks is not expected to pose a significant threat. Incumbents and the new digital banks should complement each other in enhancing the financial inclusion and ecosystem, in our view. Maintain OVERWEIGHT given moderating credit cost outlook and attractive valuations. CIMB is our top sector pick.
|
|
OCBC |
DBS VICKERS |
|
Haier Smart Home (600690 CH) - Still bright prospects over longer term
From a humble refrigerator company in the 1980s, Haier Smart Home has grown to become one of China’s top white goods/home appliances company today. It focuses on providing smart home solutions to customers to meet the needs of users looking for a better life. The company is not just limited to the Chinese market as overseas operations account for about half of total revenue, having successively acquired the white goods business of Sanyo of Japan, the household appliance business of GE Appliances, Fisher & Paykel in New Zealand, and Candy company in Italy, amongst others. BUY.
|
Technology Sector How long will chip shortage last?
• Chip shortage shows no signs of abating as demand remains strong • Higher chip prices and longer waiting times while chip makers ramp up production and boost capacity • Chip supply situation can improve in 1H22 and is likely to be resolved by 2023 • Semiconductor plays – AEM, ASM Pacific, Frencken, Inari and UMS – are clear beneficiaries; while mid-todownstream players’ fortunes could be mixed
|
Check out our compilation of Target Prices
