---
title: "Stock Analysis: Frencken Group | Lianhe Zaobao"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/278861283.md"
description: "Frencken Group recommends buying, with a target price of 2.50 yuan and a closing price of 2.03 yuan. The net profit (PATMI) for the second half of the fiscal year 2025 is expected to increase slightly by 1% year-on-year to 19.2 million yuan, with a significant increase of 76% in industrial automation business revenue, while life sciences business revenue decreased by 12%. Looking ahead to the fiscal years 2026 to 2027, the semiconductor business is expected to become the main growth driver, with orders expected to gradually recover, especially with a substantial increase in the production of photolithography machines. Maintain a \"buy\" rating"
datetime: "2026-03-12T10:12:17.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/278861283.md)
  - [en](https://longbridge.com/en/news/278861283.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/278861283.md)
---

# Stock Analysis: Frencken Group | Lianhe Zaobao

### Frencken Group

-   Recommendation: Buy
-   Target Price: 2.50 SGD
-   Closing Price: 2.03 SGD (no change)

Frencken Group's net profit after tax and minority interests (PATMI) for the second half of fiscal year 2025 met our expectations, with a slight year-on-year increase of 1% to SGD 19.2 million. Revenue from the industrial automation business surged by 76% year-on-year, while revenue from the life sciences business fell by 12%.

Looking ahead to fiscal years 2026 to 2027, we believe the semiconductor business will be the main driver of the group's growth. We estimate that orders will gradually recover and accelerate in the second half of fiscal year 2026, as major customers significantly increase the production of advanced photolithography machines.

Leading foundry TSMC has previously projected that artificial intelligence and high-performance computing demand will continue to grow, estimating that capital expenditures this year will increase by 32% year-on-year, with 70% to 80% of the investment allocated to advanced process technology.

#### Further Reading

Stock Analysis: Nordic Group Stock Analysis: UMS Integration

We believe that the above phenomenon will lead to increased demand from high-end equipment manufacturers for Frencken Group.

Maintain "Buy" rating, target price SGD 2.50. (PhillipCapital)

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