- Tariff uncertainty is challenging to quantify. NanoFilm has no material direct exposure to the US, and Singapore-based headquarters offers optionality.
- NanoFilm's 1Q25 revenue grew 12% y-o-y to S$44m, but gross profit margin disappointed at 27% on softer revenue contribution from the Industrial Equipment Business Unit (IEBU) – 1Q25 revenue constituted around 20% of our full year forecast.
Topline driven by AMBU and NFBU
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- Within the AMBU, the Industrial segment led growth at +34% y-o-y on the back of contributions from newly acquired EuropCoating. The Automotive segment grew 15% y-o-y, while the computer, communications, and consumer electronics (3C) segment grew 6% y-o-y.
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- Finally, revenue from Sydrogen expanded 158% y-o-y.
Tariff’s the word.
- The outlook for tariffs remains uncertain, in our view; although US President Trump has exempted smartphones, computers, and selected electronic devices from “Liberation Day” tariffs, he has promised potential action against semiconductors and the electronics supply chain.
- NanoFilm highlighted that it has no material direct exposure to the US, and that its Singapore-based headquarters offer optionality to support key customers in multiple geographies and for future (equipment) exports.
Non-consensus BUY on valuation ground.
- Read more at SGinvestors.io.
