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