Frontken Corporation Berhad (FRONTKN) delivered higher net profit QoQ. In 4Q23, FRONTKN has achieved a net profit of RM29.7m from RM26.8m (+10.8% QoQ), despite achieving a lower QoQ, but with improved margins from higher interest income and reduced effective tax rates.
Malacca Securities (MSSB), in its technical focus note today (Mac 4), said the global semiconductor industry expected to experience a double-digit growth in 2024 supported by the increasing demand for memory chips for smartphones and PC sales.
Better utilisation of the new 2nd facility in Taiwan – FRONTKEN is cautiously optimistic on a much better utilisation of the new facility, as well as hopeful on more of its projects with its customers to come into fruition in FY24.
Technical Outlook
Share price has been consolidating around RM3.70 and last closed at RM3.65. As the technical readings are still positive, we expect follow-through buying interest to be seen in the near term, targeting RM3.82-3.90, with a LT target at RM4.05. Support is set around RM3.55-3.60, with a cut loss set around RM3.52.
FRONTKN is a leading provider of support services to the semiconductor industry, surface treatment and mechanical engineering solutions, serving a wide-range of industries such as Semiconductor, Oil & Gas, Power Generation and Marine.
