Frontken Corporation Bhd's earnings delivery rebounded strongly in the third quarter of 2024 with improvements across key market segments, prompting analysts to raise its target price by 18% to RM4.95, reported Maybank Investment Bank Bhd (Maybank IB).  

Frontken is favoured for its resilient outlook backed by ongoing recovery in Singapore's semiconductor volume, as well as resolution of its operational uncertainty in Malaysia.

Buoyed by a stronger-than-expected sequential pickup in Malaysia and Singapore, Frontken's third quarter group turnover of RM144.3 million represented a growth of 8% year-on-year (YoY) and 7% quarter-on-quarter (QoQ). The strong turnover is also Frontken's highest quarterly turnover on record that resulted in a quarterly Core Net Profit (CNP) of RM36 million.  

Analysts have projected Frontken's 2024 revenue to total at RM645.4 million, up from RM500.1 million recorded in 2023, a nearly 30% growth YoY. The 2024 full-year CNP has been projected at RM137.4 million.

Frontken's year-to-date (up to September) CNP of RM95.1 million, though growing YoY but still fell short of prediction by Maybank IB and consensus.

Maybank IB has recommended a BUY grade for Frontken and has raised the target price by 18% to RM4.95, a premium of RM1.11 or 22.4% from the current market price level.

As at 10:48am on Oct 30, Frontken's stock traded at RM3.84, up one sen from its previous settlement price of RM3.83 recorded on Tuesday. (Stock updates from Bursa Malaysia)