$Frencken (E28.SG)$ UOB KH maintain buy on Frencken with a 3...

UOB KH maintain buy on Frencken with a 34% higher tp of 1.65 from 1.23.

They expect Frencken to report 4Q23 earnings of S$7m (-52% yoy/+0% qoq). Its recent positive results and the outlook of its semiconductor customers ASML and AMAT indicate that demand for semiconductor equipment is expected to improve in 2024, driven by strong order wins and higher PC, cloud and AI data centre spendings. These are positive for Frencken, as it derives one-third of its revenue from the semiconductor segment.