Nanofilm Technologies - UOB Kay Hian 2023-11-09: Expect Weakness To Continue In 4Q23; Downgrade To SELL

Nanofilm Technologies - Expect Weakness To Continue In 4Q23; Downgrade To SELL

NanoFilm (SGX:MZH) | SGinvestors.ioNanoFilm (SGX:MZH)
  • NanoFilm reported 3Q23 revenue of S$55m (-19% y-o-y, vs S$73m in 1H23). 9M23 revenue is in line with our expectation, forming 80% of our full-year estimate. The operating environment for 3Q23 remains challenging due to weaker consumer sentiment, with expected market volatility in 4Q23.
  • - Read this at -
  • We trim our 2023 and 2024 earnings forecast for NanoFilm by 98% and 34% respectively. Reduce target price for NanoFilm by 34% to S$0.66.
  • Downgrade NanoFilm to SELL on a more challenging mid-term outlook.

9M23 revenue in line, profitability achieved in 3Q23 due to better gross margin and cost management.

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  • 3Q23 revenue was S$55m (-19% y-o-y, vs S$73m in 1H23), which means that Nanofilm has achieved profitability vs an S$8m loss in 1H23.
  • Gross margin improved to above 40% in 3Q23 vs 32% in 1H23 due to ongoing efforts in cost management. This improvement occurred despite a 19% y-o-y decline in revenue. Also, operating expenses dropped by 10% y-o-y in 3Q23.

The operating environment for 3Q23 continued to be challenging.

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Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @

John Cheong UOB Kay Hian Research | 2023-11-09

Read also UOB's most recent report:
2024-02-28 Nanofilm Technologies - Weak 2023 Results On Lower Demand; Maintain SELL Due To Uncertain Outlook.

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 Dividends & Corporate Actions,
NanoFilm News Articles


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