Frontken Corp Bhd traded steady in late afternoon action, with analysts maintaining a BUY call and raising target price to RM5.35 from RM4.50 while highlighting continued earnings momentum driven by semiconductor demand and capacity expansion plans.
As at 3.01 pm, Frontken was last done at RM4.65, unchanged from its previous close level, after trading between RM4.57 and RM4.73. Volume stood at 1,084,800 lots with buying interest seen at RM4.65 and selling pressure slightly higher at RM4.66, reflecting a tight trading range as investors digested recent earnings strength and upgraded forecasts from research houses.
The stock’s recent performance comes after Frontken reported a strong start to FY26, with first quarter profit after tax rising 38% year-on-year, supported by robust revenue growth across both Malaysia and Taiwan operations. Revenue climbed 43% year-on-year to RM190 million, driven by stronger semiconductor-related demand in Taiwan and a sharp rebound in oil and gas-linked activities in Malaysia.
Analysts noted that Malaysia operations saw a 266% surge in revenue while Taiwan recorded double-digit growth, underpinned by sustained chip manufacturing activity. Although forex headwinds from a stronger ringgit weighed on translation, underlying demand remained firm with expectations of further acceleration in coming quarters.
Research houses also pointed to Frontken’s strengthened balance sheet following warrant exercises that raised about RM968 million, lifting net cash to more than RM1.5 billion. This provides additional capacity for expansion in Taiwan and Singapore where upgrades and new production lines are being rolled out to support upcoming customer demand.
Despite broader market volatility, Frontken’s outlook remains anchored on semiconductor cycle strength and operational expansion, with analysts maintaining positive bias on earnings visibility into FY26 and FY27.
