Nanofilm Technologies - CGS-CIMB Research 2022-08-12: Heading Into Seasonally Stronger 2H

Nanofilm Technologies - Heading Into Seasonally Stronger 2H

  • NanoFilm Technologies (SGX:MZH)'s 1H22 revenue rose 15.2% y-o-y to S$111.3m with all business segments registering y-o-y growth. 1H22 revenue formed 39.0 and 36.0% of our and Bloomberg consensus’ full-year forecasts respectively. 1H22 net profit increased 5.1% y-o-y and was 11.1% below our S$21.2m forecast. 1H22 net profit formed 27% and 25% of our and Bloomberg consensus’ full-year forecast repectively (below expectations).
  • A higher dividend of S$0.011 per share was declared (1H21: S$0.01). See NanoFilm's dividend history.
  • NanoFilm quantified that due to the COVID-19 lockdowns in Shanghai, the group lost S$8.0m in revenue. NanoFilm also incurred a one-time S$2.1m expense to keep production running during the COVID-19 lockdown in Shanghai in 1H22. Management said operations in Shanghai have now normalised.
  • Management also guided the seasonally stronger 2H trend will remain intact in FY22F. Over FY20-21, on average, 2H accounted for 70.0% of full-year revenue.
  • Its major customer accounted for 56% of 1H22 revenue and y-o-y, the list of parts that this customer is sending to NanoFilm for coating has grown. NanoFilm highlighted that as a near-term objective, it is in active discussions with a partner in China to set up a factory (on a rental basis) to coat components for batteries used in electric vehicles.
  • We lower our FY22F EPS by 3.1% to reflect the COVID-19 one-off expenses and raise FY23-24F EPS by 0.3% as share buybacks by NanoFilm has reduced its outstanding number of shares. Our target price for NanoFilm is reduced slightly to S$3.05.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @

William TNG CFA CGS-CIMB Research | 2022-08-12
SGX Stock Analyst Report ADD MAINTAIN ADD 3.05 DOWN 3.070

Read also CGS-CIMB's most recent report:
2022-09-29 Nanofilm Technologies - ApexTech JV Could Create A New Revenue Stream

Target prices by 2 other brokers at NanoFilm Target Prices.
Listing of broker reports at NanoFilm Analyst Report.

Relevant links:
NanoFilm Share Price History,
NanoFilm Announcements,
NanoFilm Dividends & Corp Actions,
NanoFilm News Articles


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