- Post the release of NanoFilm Technologies (SGX:MZH)'s 9M22 update on 3 November 2022, further developments, especially with regard to the disruption to the smartphone supply chain of one of NanoFilm's key customers, and also the industrial equipment segment, has worsened, vs our earlier expectations of a gradual improvement.
- - Read this at SGinvestors.io -
- In the last two years, 2H typically accounts for ~60% of total revenue. For 9M22, NanoFilm registered revenue growth of 10% y-o-y. 1H22 saw revenue growth of 15% y-o-y.
Disruptions to supply chain affecting the smartphone segment.
- The customer's factory in Zhengzhou, which supplies the bulk of the smartphone products for NanoFilm, has been operating at a significantly reduced capacity due to the COVID-19 restrictions in China. Hence, revenue contribution for this segment is expected to be lower.
- - Read this at SGinvestors.io -
- Overall, the 3C segment, which typically contributes > 60% to NanoFilm's total group revenue, could continue to see demand weakness in 2023. According to data from Gartner, phones, PCs, and tablets are projected to be back on the growth path only in 2024.
Industrial equipment segment affected by cuts in customers’ capital expenditure.
- Read more at SGinvestors.io.
