Frontken

Frontken

Postby winston » Fri Aug 25, 2017 8:52 am

not vested

Trading Buy: FRONTKEN - 0128
(Last price: RM0.340, Potential upside +25.0%)

Company Profile
• Frontken is a leading service provider of surface engineering in the Asia Pacific region, serving customers from the oil & gas, power generation, petrochemical and semiconductor industries.

Trading Catalyst

For 1H17, revenue increased by 13.1% yoy, while earnings advanced more than doubled with the help of strong gains in semiconductor division from Taiwan and Singapore.

To recap, Frontken has increased its stake in AGTC from 73.2% to 84.6% for a sum of RM14m in June, which may lead to higher revenue contribution towards Frontken for the semiconductor business in the future.

Technical View
Resistance: RM0.375 / RM0.400 / RM0.425
Support: RM0.335 / RM0.330
Cut loss: RM0.320

Key Financial Stats
1HFY17 EPS: 1.03 sen (+186% yoy)
Dividend: 0.5sen per share.

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: Frontken

Postby winston » Tue Feb 13, 2018 8:47 am

not vested

Trading Buy: FRONTKN - 0128
(Last price: RM0.405, Potential upside +23.5%)

Company Profile
• It is a leading provider of surface metamorphosis and mechanical engineering solutions, serving a diversified industries including semiconductor (foundries), TFT-LCD, hard disk, manufacturing, oil and gas (O&G), power generation, renewable energy, marine etc.

Trading Catalyst

• Serving diversified industries from semiconductor (foundries), TFT-LCD, hard disk, manufacturing, oil and gas (O&G), power generation, renewable energy, marine, etc… in Malaysia and regional markets.

• The group has switched from heavily focused O&G related services to higher margin semiconductor services.

• Growth drivers are coming from its top foundry customers in Taiwan and potential new foray into China markets.

• Uptrend channel intact with low downside risks amid undemanding valuation and favourable prospects.

Technical View
• Resistance: RM0.435 / RM0.470 / RM0.500
• Support: RM0.395 / RM0.370
• Cut loss: RM0.365

Key Financial Stats
• Trading at 12.3x FY18 P/E (ex-cash 8.5x)

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: Frontken

Postby winston » Mon Jun 11, 2018 2:01 pm

not vested

Trading Buy: FRONTKN-0128
(Last price: RM0.410, Potential upside +22.0%)

Company Profile
• Frontken is a leading provider of surface metamorphosis and mechanical engineering solutions, serving diversified industries including semiconductors & electronics manufacturing, O&G, power generation, petrochemicals and marine sectors.

Trading Catalyst
• At RM0.41, Frontken is trading at 10.3x FY18 P/E (against 5-year average of 20x). Excluding its net cash with RM96m or 9.1 sen per share, valuation is even more compelling at 8x P/E.
• Downside risk is limited, as sentiment is boosted by recent USD strength (vs RM), cheap valuation and company‘s recently approved share buy-back exercises.
• Potential triangle breakout with upside targets at RM0.435-0.50.

Technical View
• Resistance: RM0.435 / RM0.455 / RM0.500
• Support: RM0.390 / RM0.380
• Cut loss: RM0.370

Key Financial Stats
• Trading at 10.3x FY18E (Ex-cash of RM0.09, P/E is even more compelling at 8x).

Source: HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: Frontken

Postby winston » Tue Sep 29, 2020 8:57 am

not vested

HLIB Research reiterates a BUY on FRONTKN with TP of RM3.96, ascribing a PE multiple of 40x to FY21 EPS.

We justify this valuation based on its unique exposure to the world’s leading-edge semiconductor front-end supply chain which is currently in high demand on the back of national strategic and security interests.

We like Frontken for its multi-year growth ahead on the back of:-
(1) sustainable global semiconductor market outlook
(2) robust fab investment
(3) leading-edge technology (7nm and below) and
(4) strong balance sheet (net cash of RM247m or 23.4 sen per share).


Technically, the stock’s upside remains bright following the flag breakout formation, supported by bottoming up indicators.

Upside targets are situated at RM3.73 (76.4% FR) and RM3.95 (all-time high) before reaching our LT objective at RM4.16 (123.6% FR) levels.

Key supports are pegged at RM3.49 (50% FR) and RM3.38 (61.8% FR) levels. Cut loss at RM3.33.

Source: HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: Frontken

Postby winston » Wed Nov 04, 2020 9:24 am

not vested

HLIB Institutional Research reiterates a BUY rating on FRONTKN with TP at RM4.10 (+16% upside).

We like Frontken for its multi-year growth ahead on the back of :-
(1) sustainable global semiconductor market outlook
(2) robust fab investment
(3) unique exposure to leading-edge technology semiconductor front tend supply chain
(4) strong balance sheet (net cash of ~RM263m or 25 sen per share) to support its Taiwan expansion and
5) serving the niche market with high entry barrier.

Technically, FRONTKN’s uptrend remains relatively intact barring a decisive breakdown below RM3.42 (support trendline from 11 Sep low at RM3.04).

A decisive breakout above RM3.63 (10D SMA) will lift the stock from ongoing sideways consolidation mode higher towards RM3.79 (upper BB) and our LT objective at RM4.00 levels.

Key supports are RM3.42 and RM3.34 (100D SMA). Cut loss at RM3.31.

Source: HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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