Nanofilm Technologies - UOB Kay Hian 2022-11-22: Expect A Challenging 4Q22 Due To Disrupted Production; Downgrade To SELL

• We expect NanoFilm Technologies to report a weak 4Q22, with 2H22 earnings to decline by 30% y-o-y, due to Foxconn’s production in Zhengzhou, China being disrupted. The city is still subject to tight restrictions even though the seven-day lockdown was lifted on 9 Nov 22. The ongoing restrictions have led to Customer Z reducing its shipment forecasts for premium phones.
• - Read this at SGinvestors.io -

Production challenges faced by Nanofilm's major customer have led to a cut in shipment forecasts.

• NanoFilm Technologies (SGX:MZH)’s largest customer, Customer Z had in early-Nov 22 reduced the shipment forecasts of its newest premium iPhones after lockdowns in China affected operations of its supplier’s plant in China.
• - Read this at SGinvestors.io -
• Market researcher TrendForce also recently cut its iPhone shipment forecast for Oct-Dec 22 by 2m-3m units to 77m-78m, from 80m, due to the factory's troubles.

Mixed signals regarding reopening of China’s economy vs zero-COVID policy.

• Read more at SGinvestors.io.

Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Read also UOB's most recent report:
2025-04-23 Nanofilm Technologies - 1Q25 Revenue In Line But Gross Margin Misses Expectations.

Previous report by UOB:
2024-10-30 Nanofilm Technologies - 3Q24 Revenue In Line With Expectations; Maintain SELL On Rich Valuation.

Price targets by 2 other brokers at NanoFilm Target Prices.

Listing of research reports at NanoFilm Analyst Reports.

Relevant links:
NanoFilm Share Price History,
NanoFilm Announcements,
NanoFilm Dividend Payout Dates & Corporate Actions,
NanoFilm News