In a recent report, UOBKayHian has highlighted Frencken, UMS, and Valuetronics as the top tech manufacturing stocks in Singapore, citing their strong earnings growth potential and favourable market conditions. The report, released on 5 August 2025, underscores the impact of the Monetary Authority of Singapore’s S$5 billion Equity Market Development Programme (EQDP) on these companies, which have seen a 30-50% rally year-to-date.
Frencken is expected to report a 10% year-on-year increase in earnings for Q2 2025, driven by growth in the semiconductor segment. UMS is also projected to deliver a 12% rise in earnings, benefiting from new customer orders and a dual-listing exercise. Valuetronics, with a 4% year-on-year revenue increase, is poised for continued growth due to contributions from new customers and a strong dividend yield.
The report notes that recent industry developments, such as relaxed US chip restrictions and significant deals by major players like TSMC and Samsung, bode well for the sector. “High-performance, energy-efficient AI computing remains the dominant driver of semiconductor innovation,” according to Applied Materials, a sentiment echoed by the report.
UOBKayHian maintains an “OVERWEIGHT” rating on the sector, advising investors to focus on stocks with robust fundamentals. The report also provides target prices for the highlighted stocks: S$2.08 for Frencken, S$1.73 for UMS, and S$0.83 for Valuetronics, reflecting their potential for further valuation re-rating. As the tech manufacturing landscape evolves, these companies are positioned to capitalise on emerging opportunities.
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