on its view that the current valuations have largely priced in near-term upsides in the semiconductor segment.''Our FY21-22E earnings are intact – primarily underpinned by the continuation of favourable earnings growth of the semiconductor segment which would partly offset the softer O&G segment,'' it said in a note.
It said the higher earnings were mainly owing to the volume pick-up in the semiconductor segment due to higher demand and stronger order from its key Taiwanese customer.
This was partially offset by the weaker oil and gas segment, which affected revenue and margins, as well as the marginally higher tax rate.
Maybank IB, which has a ''hold'' recommendation on Frontken, lowered its FY20 earnings forecast by 9% to factor in the softer oil and gas segment's earnings due to prolonged weakness in the industry.
However, the research house maintained its target price of RM3.60, pegged to an unchanged 37x FY21 forecast price-earnings at about plus-2 standard deviation of mean due to Frontken's earnings resilience.
Maybank IB, which has a ''hold'' recommendation on Frontken, lowered its FY20 earnings forecast by 9% to factor in the softer oil and gas segment's earnings due to prolonged weakness in the industry.
However, the research house maintained its target price of RM3.60, pegged to an unchanged 37x FY21 forecast price-earnings at about plus-2 standard deviation of mean due to Frontken's earnings resilience.
US 18227 
GB 13670 
CA 11403 
AU 6198 
IE 3096 
NZ 1523 
BR 948 
IN 931 
