NanoFilm Technologies (SGX:MZH) registered a 13% y-o-y growth in revenue to S$83mil in 1H24, led by the Advanced Materials Business Unit (AMBU) and in particular, the 3C (Computer, Communication, Consumer) segment.
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The Nanofabrication Business Unit (NFBU) grew 49.8% y-o-y, attributable to higher sales in the consumer electronics sectors.
The Industrial Equipment Business Unit (IEBU), however, saw a 56.0% y-o-y revenue decline due to a softer market as customers were cautious with capital expenditure and the equipment sales cycle is typically longer.
Contribution from Sydrogen is still small at S$0.7mil.
Improvement in gross margin sustainable; 1H24 net loss narrowed vs a year ago.
Gross profit saw an 18% y-o-y improvement to S$27.7mil. Gross profit margin (GPM) improved to 33.5% in 1H24 compared to 32.0% in 1H23, and 33% in 1Q24, primarily due to the recovery in AMBU and NFBU, but partially offset by a weaker performance in IEBU.
We expect further GPM improvement for NanoFilm in 2H24 as production volume increases. In 2H23, the group registered a GPM of 40.6%. Net loss reduced to S$3.7mil for 1H24 compared to a net loss of S$7.9mil for 1H23. This was mainly due to higher sales and cost control measures in place.
Anticipating a stronger 2H.
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Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
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