Frontken up as much as 9%, sees continued interest from Apple chip demand

by **Cals** Wed 22 Apr 2015, 20:37

Frontken up as much as 9%, sees continued interest from Apple chip demand

KUALA LUMPUR (April 22): Frontken Corp Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) rose as much as 9% during the morning trade today, possibly on continued positive investor interest after news that Apple Inc had awarded nearly a third of its A9 chip orders to Taiwan Semiconducting Manufacturing Co (TSMC).
Frontken (fundamental: 1.8; valuation: 0.3) has a 57.79% stake in Taiwan-listed Ares Green Technology Corp, which counts TSMC as one of its clients.
Ares Green provides ultra-cleaning services, anodising treatment, electro and chemical polishment and other reburshiment services for the semiconductor and optoelectronic products.
A remisier told theedgemarkets.com that the recent run up in Frontken’s share price could be due to the news, but he believes it has already been priced in.
“Since TMSC has beat out its competition to secure the chip orders for the new iPhones, the entire value chain has benefitted from the spillover effects,” he said.
At 2.44 pm, the stock was two sen or 7.27% higher at 29.5 sen after some 132.07 million changed hands, making it the most actively-traded counter across the bourse. The current price gives it a market capitalisation of RM314.54 million.
Over the last year, the stock has risen 114.29%; it gained some 71.43% since April 7 alone.
Frontken was also recently featured in the Stocks with Momentum column in The Edge Financial Daily on April 13.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)