We reiterate our Add call on Frencken as it seems to be seeing the early stages of recovery among its semicon customers, in our view, leading to a potential resumption in double-digit core EPS growth in FY24-25F. Our TP is unchanged at S$1.37, based on 12.2x, its 5-year (FY19-23F) average). Given the better-than-expected 3Q23 net profit due to stronger gross and net profit margins, we raise our gross profit margin assumption for FY23F by 0.03% pt, leading to a 6.9% increase in our FY23F EPS forecast. Our FY24-25F forecasts are unchanged. Potential re-rating catalysts: a less severe slowdown in its semicon business segment, better cost controls, and greater concessions from customers on cost pass-throughs. Downside risks: further cost escalations affecting its net profit negatively, and further weakening in demand for its semicon business segment.