Nanofilm Technologies

[winston]

not vested

2020: Strong Finish; Positioned For Growth Across Multiple Avenues

2020 core earnings of S$61m (+70% yoy) excluding one-off IPO expenses beat our
estimate by 6%.

Revenue increased by 53%, driven mainly by both key segments.

Shanghai Plant 2, which started operations in Feb 21, will provide ample capacity for
growth.

Nanofilm targets to maximise its technologies in multiple new end-markets to
achieve sustainable growth.

We raise our 2021 and 2022 EPS by 4% and 9% respectively.

Our target price increases 22% to S$5.51 (35x 2022F PE). Maintain BUY.

Source: UOBKH

https://research.uobkayhian.com/content ... ea6ba590ed

[winston]

not vested

Valuation

TP of S$6.22 on PEG valuation.

Given the high-growth profile for Nanofilm, we believe PE-to-growth (PEG) is an appropriate metric to use to value the company.

Using average earnings growth rate for both FY21F and FY22F of 38% and pegging it to peers’ average PEG of 1.13x, we derive a TP of S$6.22.

Source: DBS

https://www.dbs.com.sg/treasures/aics/s ... ANO_SP.xml

[winston]

not vested

Outlook still robust

Customer Z’s upcoming product launch could introduce a new line of tablets that may further catalyse NANO’s earnings growth in FY21F.

We continue to expect the 3C markets to drive earnings growth in FY21F.

We reiterate our Add call with an unchanged TP of S$5.52.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 3d288b62e2

[behappyalways]

Nanofilm CEO steps down due to health reasons, chairman Shi Xu appointed interim CEO
https://www.theedgesingapore.com/news/n ... ed-interim

[behappyalways]

Nanofilm Technologies confirms $140 million JV with Temasek to capture growing hydrogen economy
https://www.theedgesingapore.com/news/s ... g-hydrogen

[winston]

not vested

Aug 13, 2021

Nanofilm's COO quits, less than two months after CEO; earnings down 3.1% on plant expansion costs

The company’s founder, controlling shareholder and executive chairman Shi Xu has assumed CEO role as an interim measure.

Its profit margin was down 5.1 percentage points to 18.7%, because of costs incurred for a new plant in Shanghai, new product introduction costs and also because the projects executed in 1HFY2021 happened to be of lower margin types.

Source: The Edge Singapore

https://www.theedgesingapore.com/capita ... paign=FREE

[winston]

not vested

Nanofilm Technologies International (NANO SP)
1H21: Below Expectations Due To Higher Costs; Downgrade To HOLD

1H21 earnings of S$17.9m (-3% yoy) was a miss, meeting only 22% of our full-year
estimate.

This was due to higher costs for the new Shanghai Plant 2 and higher new
product introduction costs.

Nanofilm expects recovery in 2H21 as new chip shortages ease and new projects commence.

We cut our 2021 and 2022 EPS by 15% and 9% respectively.

Downgrade to HOLD with a 27% lower target price of S$4.00 (28x 2022F PE vs 35x previously, as Nanofilm fell short of our earnings expectations in 1H21).

Source: UOBKH

https://research.uobkayhian.com/content ... 6ea1125578

[winston]

not vested

Nanofilm Technologies International (NANO SP): Take a break [HOLD, downgrade from BUY; TP: S$4.18]

Downgrade to HOLD. TP lowered to S$4.18, on weak results and resignation of key executives denting investor confidence

Weak 1H21 results due to higher expenses for new plant and new projects; change in product mix

Expect a stronger 2H due to seasonality factor, but supply chain disruption remains a concern

27%/22% cut in FY21F/FY22F earnings

Source: DBS

[winston]

not vested

Shares of Nanofilm Technologies International fell 28.8 per cent on Monday to S$4.25 even though the firm is expecting better performance in the second half of the year as it enters its peak season for business activity and as new projects - such as hydrogen fuel cells - progressively come to fruition.

This is following a disappointing set of half-year results announced last Friday.

Net profit dipped 3.1 per cent for the first half of this year, amid higher costs in manpower and manufacturing overheads.

Revenue had improved 24.2 per cent for the six months ended June 30, from S$77.8 million in the corresponding period last year, led by its advanced materials business unit, which saw an 18.5 per cent increase in revenue.

Source: Phillips

[winston]

Playing catch-up in 2H21F

1H21 PATMI below expectations, dragged by supply chain risks,
unfavourable sales mix and one-off expenses for 2H21F ramp-up.

COO departure has minimal impact. Demand still strong with new projects in
the pipeline; much will depend on customers’ ability to secure components.

Reiterate Add, with a lower TP of S$5.05, pegged to c.34x FY22F P/E.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 8c9e891c7d