Frencken Group (FRKN SP)
2H21: Results In Line; Semiconductor Remains Key Driver In 2022

Frencken’s 2H21 earnings of S$27.4m (+14.9% yoy, -12.6% hoh) took full-year net profit
to S$58.7m (+38%), meeting estimates. In 2021, the semiconductor sub-segment
(+55.6%) led positive operating leverage on sustained demand for lithography systems.
Expected ROE uplift from top-line expansion to continue into 2022-24, supported by
streamlining of operations and cost initiatives, with three-year EPS CAGR of 18.9% over
the period. Maintain BUY with target price of S$2.06. 

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UOB KAYHIAN

OCBC

Civmec (CVL SP)
Laggard To Commodity And Defence Peers Despite Having Good Sector Exposure

Civmec’s ytd share price performance of -1% is laggard vs its commodities peers (Rex
+43%, RH Petrogas +99%, SMM +15%, Geo Energy +54%). To recap, Civmec is one of
Australia’s leading engineering players, serving key sectors including defence and
resources. Its clients include Chevron, Rio Tinto, Alcoa, BHP and Thyssenkrupp. Civmec should see margin expansion as its clients will benefit from the high commodity prices. We raise our FY22F EPS and target price by 10% to S$1.08. Maintain
BUY. 

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Golden Agri-Resources
Singapore | Consumer Staples

Rating HOLD (as at 3 March 2022)
Last Close SGD 0.31
Fair Value SGD 0.32
Boosted by strong CPO prices
• FY21 net profit of USD476m
• Targeting FFB to grow 5% YoY
• Full-year dividend of 1.605 S cents

Investment thesis
Golden-Agri’s (GAR) FY21 results beat expectations due to stronger crude palm oil (CPO) market prices and better-than-expected margins. GAR’s FY21 revenue rose 44% YoY to USD10.2b while EBITDA
increased 81% YoY to USD1.2b. PATMI grew significantly by USD444m YoY to USD476m in FY21. A final dividend of 1.077 S cents per share was declared, bringing full-year dividend to 1.605 S cents. Management expects Fresh fruit production (FFB) to grow 5% YoY and flattish cost of production at ~USD300 per tonne for FY22. CPO prices could remain supported by tight global edible oil supply, production challenges and improving consumption demand. After adjustments, our fair value
estimate increases from SGD0.29 to SGD0.32.