Nanofilm Technologies - DBS Research 2025-08-15: Orders Steady, Acceleration Pending

• NanoFilm reported a 29.6% y-o-y increase in revenue to S$107.2mil in 1H25, marking a return to profitability.

Broad-based revenue growth and cost discipline drive return to profitability in 1H25, broadly in line.

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• Industrial Equipment Business Unit (IEBU) revenue surged 117% on project completions and milestone-based revenue recognition.
• Nanofabrication Business Unit (NFBU) posted a 9.5% increase, while Sydrogen doubled its sales, though it remained EBITDA-negative.
• Gross margin eased slightly to 32.6% (1H24: 33.5%) due to higher NPI-related costs, but EBITDA margin improved to 22.8% (1H24: 20.2%) on higher volumes and structural cost efficiencies.
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Seasonality less pronounced this year.

• Historically, 3Q and 4Q have been NanoFilm’s peak seasons. However, this year, the production ramp up began earlier in 2Q, with orders more evenly distributed across the year. As a result, 1H25 results have already captured part of the seasonal uplift.
• While 2H25 is still expected to be stronger than 1H25, the difference between the two halves is narrower compared to previous years.

Order momentum more subdued.

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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/.

Previous report by DBS:
2025-04-22 Nanofilm Technologies - Margin Recovery Still Underway; 1Q25 Below Expectations..

Price targets by other brokers at NanoFilm Target Prices.

Listing of research reports at NanoFilm Analyst Reports.

Relevant links:
NanoFilm Share Price History,
NanoFilm Announcements,
NanoFilm Dividend Payout Dates & Corporate Actions,
NanoFilm News