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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