The quarter's core earnings of RM26.3mil brought 1H21 core net profit to RM48.7mil, which came to 45% of Maybank IB's full-year estimates.
"Results were in-line, as we are expecting Frontken’s earnings to remain seasonally stronger in 2H," it said, while reiterating its target price of RM3.90.
The semiconductor segment continued to drive Group’s 2Q21 earnings, which was primarily attributed to a significant increase in volume/orders from their key customer in Taiwan.
Maybank IB said its FY21-23 net profit estimates remain intact with growth largely driven by Frontken's semiconductor segment, namely in Taiwan.
In view of expanding in Taiwan, Frontken has completed the purchase of a new facility with operations expected to commence in mid-2022.
"We have yet to factor in significant earnings contributions from the upcoming plant in our FY22-23E forecasts, pending further operations visibility and updates.
"Meanwhile, Frontken is backed by a favourable net cash position of MYR312m or 20sen/share (end-2Q21)," said Maybank IB.