BursaBets [ Rabbit Trader Turtle Investor ]

Frontken - 5G Boom, Semiconductor and O&G Recovery

InsiderShark
Publish date: Tue, 25 Aug 2020, 12:55 PM
InsiderShark
0 6
Dividend stocks are companies that gives up on growing, they are telling the investor we do not know what to do with the cash or how to use the profit to grow the company. In the long run, dividend stocks will lose market value. Google "Chamath Palihapitiya's case against stock buybacks, dividends". YTL, Genting, Digi, Maybank, Public Bank are dividend stocks that gives good dividends but their market value continues to decline. Don't believe me, look at their 10 years chart.
Following Message

Join our Telegram Channel BursaBets

 

Do you spend more money servicing your aircond or paying for an aircond? Which is more profitable for a car dealer? Selling cars or servicing the car sold to you? Now that I've got your attention, read on.

If there is one semiconductor related stock you need to invest and hold for 3 to 5 years, Frontken is it. Frontken is a percision cleaning services company, they provides surface engineering services for O&G, petrochemical, power generation, semiconductor and electronic manufacturing sectors.

As we all know, the semiconductor industry is booming now, thanks to Covid Lockdown and 5G. On the other hand O&G has yet to rally. Oil price will eventually recover and Frontken is also a leading service provider of critical services for oil and gas services in various countries.
 

 

"The 5G infrastructure market, said JF Apex, is expected to grow at 53.01% annual from this year to 2025. We believe a massive amount of semiconductors and chips are needed in the next five years in order to cater to the demand of 5G smart devices including smartphones, laptops, wearable devices and tablets. As a result, foundries will need more maintenance services for machinery to fulfil substantial chip orders from global smart device developers,” JF Apex said.

 
 
 
 
Frontken chairman cum chief executive officer Nicholas Ng Wai Pin expects the group’s second half performance to be even better than its first half.

Ng said the second half of the year is the traditionally stronger period with better demand from its semiconductor-linked customers. He is also anticipating a recovery in the oil and gas industry after the pandemic-induced disruption.

“So, we hope for another record set of earnings. And historically, we have been growing. That means every year we will be better than the previous year. In terms of growth rate, it will be still in the double-digits,” Ng told theedgemarkets.com after the group's annual general meeting last Wednesday.
 
 
Why Is FrontKen The Best Semiconductor + O&G Related Stock?
 
 
Simply put it, over the years, you spend more money servicing your aircond than paying for the aircond. When you purchase an aircond, the aircond manufacturer only made a one off profit, whereas you have to service the aircond every 6 to 12 months for optimal performance. In the semiconductor world, optimal is not an option. The machines have to perform their best, and this requires frequent servicing.

With the coming semiconductor boom lead by 5G, Frontken will be seeing lots of business. And when oil prices recover, they will have even more profit.
 
 
 

 
Future Growth
 
 
5G together with digitalization of almost everything, from cars to watches, from education to healthcare, will greatly benefit the semiconductor industry, and Frontken is one of the indirect beneficiary.
 

 

3 Reasons To Invest In Frontken

  • Next 2 quarters will be even better than the first half of 2020, and the next 5 years will be equally amazing with increasing revenue, profit and sales. Profit will be even better when O&G recovers.
     
  • 5G demand and the semiconductor boom will boost their profit until 2025 and beyond as more and more people use the internet due to covid.
     
  • They have a moat, no real competitor for the coming 3nm chip as their competitor failed to upgrade.
Why Is FrontKen The Best Semiconductor + O&G Related Stock?
 
 
Simply put it, over the years, you spend more money servicing your aircond than paying for the aircond. When you purchase an aircond, the aircond manufacturer only made a one off profit, whereas you have to service the aircond every 6 to 12 months for optimal performance. In the semiconductor world, optimal is not an option. The machines have to perform their best, and this requires frequent servicing.

 

FRONTKN (0128)
Related Stocks
More articles on BursaBets [ Rabbit Trader Turtle Investor ]
Genting And O&G - Vaccine Availability This October 24th or 30th For Emergency Use

Created by InsiderShark | Oct 01, 2020

SCOMNET ( CoVid Medical Device Producer ) + Ace Market Melting Up

Created by InsiderShark | Aug 07, 2020

MPI - The TESLA And EV Factor? Super Massive Growth?

Created by InsiderShark | Aug 05, 2020

It Is Raining Money - Invest In UTDPLT, YINSON and SERBADK

Created by InsiderShark | Jul 22, 2020

5 Must Have Tech Stocks - FRONTKN, DUFU, PENTA, FPGROUP, and TIME

Created by InsiderShark | Jul 20, 2020

Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment