- NanoFilm Technologies reported an in line 3Q24 revenue of S$60m (+10% y-o-y). 9M24 revenue of S$143m (+12% y-o-y) formed 72% of our full-year estimate. Revenue growth was mainly led by the advanced material business unit (AMBU).
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AMBU and NFBU delivered growth while IEBU was flat y-o-y.
- NanoFilm’s largest segment, AMBU, recorded 11% y-o-y revenue growth and contributed 84% of revenue in 9M24 due to a 11% growth in the 3C sector, driven by the smartphones and tablets sub-segments, which on average grew 27% y-o-y, offset by a decline of 20% y-o-y in wearables & accessories. The decline in wearables & accessories was impacted by the supply chain but commenced production from mid-Sep 24.
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2024 earnings are still likely going to be unexciting
- Nanofilm expects 2024 revenue and earnings to be higher than that of 2023, with growth momentum expected to be carried into 4Q24. However, we think because 2023 is a very low base year with only S$3m in earnings, NanoFilm’s 2024 earnings are still likely going to be unexciting at S$10m based on our estimate, and are unlikely to support the current rich valuation of 28x 2025F P/E.
- NanoFilm expects higher full-year revenue for 2024 vs 2023, driven by:
- consumer sub-segment from expanded customer base and supporting flagship products of top global players, and
- industrial sub-segment where penetration into the European market from a low base offers growth opportunities.
Aims to drive cost optimisation
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