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.
MY 1391 
US 800 
CN 325 
AU 79 
GB 55 
CA 51 
IE 49 
NZ 46 
