- While NanoFilm’s direct exposure to the US’ tariffs is limited, the impact may be felt indirectly.
- Although NanoFilm’s revenue recovery is on track, it may take some time to achieve meaningful earnings. Maintain SELL with a lower target price.
Revenue in line with our expectation but gross margin missed expectation.
- - Read this at SGinvestors.io -
- However, gross profit margin was weaker than expected vs our expectation of gross profit margin remaining flat y-o-y, recording a 6ppt y-o-y decline to 27% in 1Q25 mainly due to softer contribution from the industrial equipment business unit (IEBU), which is a higher-margin segment.
AMBU and NFBU delivered growth, while IEBU declined y-o-y.
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- The nanofabrication business unit (NFBU) grew 49% y-o-y, while IEBU fell 24% y-o-y due to the timing of the equipment deliveries.
Limited exposure to direct impact of US tariffs but impact may be felt indirectly; diversified exposure expected to provide some resilience.
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