Frencken Group (E28.SI) saw its stock price soar by 3.05% during Monday's intraday trading session, as investors reacted positively to the company's growth prospects in the lithography industry.

The surge in Frencken's stock price comes on the heels of a bullish report from Phillip Securities Research, which highlighted the company's potential to capitalize on the organic growth of the lithography sector. Frencken is positioned as a key supplier of components for the most advanced lithography machines used in the production of 2nm chips, particularly for its Netherlands-based customer.

Analyst Yik Ban Chong from Phillip Securities Research noted several positive factors driving Frencken's outlook. These include the company's new products entering mass production, clients shifting production to Asia, and investments in new capacity. Furthermore, Frencken is expanding its front-end suite of products to include components for deposition, etch, and strip processes. The brokerage has initiated coverage of Frencken with a buy rating and a target price of S$1.76, significantly higher than its current trading price.