Nanofilm Technologies - UOB Kay Hian 2024-04-24: 1Q24 Revenue In Line But Still Loss-Making; Maintain SELL On Rich Valuation

• Maintain SELL with a 6% lower NanoFilm target price of S$0.56 after cutting our 2024 EPS. NanoFilm share price is trading at 18x 2024F P/E vs 14x for Singapore peers.
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• AMBU saw a 41% y-o-y growth due to a 51% growth in the 3C sector and a 24% growth in the automobile sector. Gross margin rose 3ppt y-o-y due to increased contribution from the 3C and industrial segments.

Revenue in line but still in a loss-making position in 1Q24.

• NanoFilm Technologies (SGX:MZH)’s 1Q24 revenue of S$39m (+19% y-o-y) is in line with our estimates, at 20% of our full-year estimates. However, NanoFilm is still in a loss-making position in 1Q24, although the loss is narrowing y-o-y.
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• Gross margin improved 3ppt y-o-y to 33% due to increased contribution from the 3C and industrial segments.

AMBU delivered growth, offsetting decline in IEBU while NFBU was flattish.

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John Cheong UOB Kay Hian Research | Heidi Mo UOB Kay Hian | https://research.uobkayhian.com/ 2024-04-24 SGinvestors.io

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