Sticking with our guns

Plenty to like post 1Q21
We remain Positive on the sector and prefer companies with WFE exposure
as these are beneficiaries of current chip shortages. Barring material
extension/ incremental restrictions of the tightened MCO in Malaysia, we
see immaterial impact on companies in our coverage. Positive read-across
from Applied Materials infers demand sustainability for this semicon
equipment spending cycle. We also raise Frencken’s TP to SGD2.00 on
unchanged 14.5x FY21E P/E, as we factor in better than expected earnings
momentum.