Singapore Company Update:

Frencken Group – No surprises in 3Q21 business update.
(FRKN SP/BUY/S$2.33/Target: S$2.62)

Frencken’s 3Q21 earnings of S$14.8m (+10.7% yoy, -10.8% qoq) took 9M21 net profit to 77% of our full-year estimate. The
business update presented no surprises, as revenue continued to be led by positive momentum in the semiconductor segment, driving improved operating leverage. We expect the semiconductor segment to continue driving growth going forward, driven by the accelerating development of 5G technology. Maintain BUY and target price of S$2.62…


HK/ China Company Update:

Automobile – Weekly: Continued recovery in PV sales despite chip supply fluctuations.
(300014 CH/BUY/Rmb134.62/Target: Rmb210.00)

In the second week of November, PV retail sales were still capped by lockdowns, and wholesale shipment recovered mom despite fluctuations in chip supplies. Chinese OEMs will be unveiling competitive new EV models with driving ranges of 500-1,000km on a single charge at the Guangzhou Auto Show, which will stimulate 2022 EV sales. Auto parts companies are benefitting from
easing logistic bottleneck. Maintain MARKET WEIGHT. Top picks: BYD, CATL, EVE, Xusheng and Nexteer…


Singapore Technical Analysis:

ST Engineering (STE SP) – Trading BUY

The price rally advanced beyond a previous high, triggering a V-shaped Ichimoku breakout. The conversion and base lines had a bullish crossover…


Rex International Holding (REXI SP) – Trading BUY

The price correction is unfolding in the form of a triangle chart pattern. The conversion and base lines had a bullish crossover, hinting at a bullish price trend…