Nanofilm Technologies

[winston]

not vested

Advanced Materials Business Unit (“AMBU”), which covers multiple industries with different market cycles, registered mixed results YTD due to challenges in supply chain externalities.

The Consumer Electronics, Communication, and Computers (“3C”) segment in particular, faced short‐term disruptions to its customers’ supply chains caused by power supply curbs in China, component delays, and resurgent chip shortages.
While the underlying demand for the 3C segment remains strong, its typical peak season from June to October has been shifted due to the aforementioned factors to the last quarter of 2021, possibly spilling into 2022.

The 3C segment contributed approximately 66% of the Group’s YTD revenue, with the Smartphone category registering substantial growth, offsetting the decline in Wearables & Accessories and Computer categories.

Beyond the 3C segment, other segments grew substantially and contributed approximately 16% of the Group’s YTD revenue, led by the increasing adoption of Nanofilm’s technology‐based solutions in multiple industries.

https://links.sgx.com/FileOpen/Nanofilm ... eID=686704

[winston]

not vested

NanoFilm Tech (NANO.SI) Growth delayed but not denied

Demand for iPhone continues to be strong; our China analyst saw supportive iPhone sell-out in China in the past two weeks, with 13 Pro/Max ranked Top 2 in Tmall/JD and Apple reaching over 22% share in the period, supporting overall market growth.

That said, we gather that Apple is reportedly expected to slash its projected iPhone 13 production targets for 2021 by as many as 10 mn units, with the revision due to chip and component shortages from suppliers Broadcom and Texas Instruments.

We also gather that 3Q21 was relatively weak for the Apple supply chain—ASP pressure on legacy products, delay in Watch and new AirPod shipment.

Power shortage in China has so far been manageable, but there could be further disruption to supply chain if it is prolonged.

*We understand that Nanofilm will likely coat fewer parts in 3Q21 and early 4Q21 given this delay.

We reduce our FY21-23E EPS by 1.1-6.8%, resulting in a lower target price of S$5.00 (from S$5.40).

* We suggest investors to accumulate into dips as it is a case of delayed growth (not denied).

Source: CS

[winston]

not vested

Nanofilm Technologies International (NANO SP)
3Q21: Delayed Peak Period Due To Supply Chain Disruptions

The peak period for Nanofilm’s production, especially for computers, communications
and consumer electronics (3C) has been shifted to 4Q21 and possibly 2022 due to
supply chain disruptions.

On a positive note, Nanofilm is seeing strong customer demand and is building up its revenue pipeline with multiple new product introduction (NPI) projects.

We trim our 2021 and 2022 EPS by 5% and 3% respectively.

Maintain HOLD with a 3% lower target price of S$3.90 (28x 2022 PE, 1x PEG).

Source: UOBKH

https://research.uobkayhian.com/content ... 701ec56b08

[winston]

not vested

Nanofilm Technologies (NANO SP): Growth delayed [HOLD, S$4.05]

Lower contribution from 3C, as customers affected by supply chain disruptions
Peak season delayed although demand remains strong
Appointment of new Group CEO to address leadership concern

Trim FY21F/FY22F earnings by 5% to 8% on delayed peak season and persistent supply chain issues. Maintain HOLD with lower TP of S$4.05

Source: DBS

[winston]

not vested

Impacted by supply chain woes

In its 3Q21 business update, Nanofilm announced that Deputy CEO Gary Ho
will be appointed as the new CEO, effective 1 Jan 2022.

Due to supply chain disruptions, Nanofilm expects 4Q21F to be stronger than 3Q21 and production orders could potentially spill into FY22F.

Reiterate Add, with a lower TP of S$4.02, pegged to c.30.44x FY22F P/E

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 3a023d9463

[winston]

not vested

UOB Kay Hian, DBS trim Nanofilm's TP and earnings forecast as supply chain delays drag on

by Jovi Ho

“The peak period for Nanofilm’s production, especially for computers, communications and consumer electronics (3C) has been shifted to 4Q2021 and possibly 2022 due to supply chain disruptions”.

“Short‐term disruptions to Nanofilm’s customers’ supply chains caused by power supply curbs in China, component delays, and resurgent chip shortages have affected the group’s Consumer Electronics, Communication, and Computers (3C) business.

Source: The Edge

https://www.theedgesingapore.com/capita ... ain-delays

[winston]

not vested

Nanofilm - SELL (Handsets underpin EPS growth)

While Nanofilm (NTI) continues to deliver impressive growth in handsets, this segment’s inherent risks (eg, pricing pressure, volatile vol. shipment) cannot be ignored. As a result, its current valuation premium is a challenge to justify.

A decline in higher-margin Wearables and Computers is another negative.

While we are excited about NTI’s strong product pipeline (eg, optical sensors and hydrogen fuel cell) in 2022-23, profit contribution is likely to be minimal as handsets remain the key growth driver.

Our revised estimates are 5-8% below consensus, and we cut our target price from S$4.10 to S$3.60, based on c.1.2x PEG (valuation unchanged). Reiterate SELL.

Source: CLSA

[winston]

not vested

Buy ahead of supply chain recovery

Upgrade to BUY with higher TP of S$4.96 on anticipated supply chain recovery
Stronger earnings execution should help the stock to re-rate and break out
Expect smartphone segment to register strong growth; wearables to recover from weak 3Q21
Growth for Nanofilm to outpace industry on market share gain and extension of product range

Valuation:

Higher TP of S$4.96 on PEG valuation. Our TP is raised to S$4.96 (previously S$4.05), pegged to a higher PEG of 0.92x (vs 0.75 previously), which is still at a discount to peers on FY22F earnings, as the supply disruption situation, although shows some pockets of improvement, is not out of the woods yet.

Source: DBS

https://researchwise.dbsvresearch.com/R ... =ghechkhab

[winston]

not vested

Focusing on long-term growth

We think Nanofilm’s 4Q21F was likely better than 3Q21 as production picked
up pace.

Our previous revenue expectations for FY21-23F may need to be lowered for
now pending stronger growth recovery for its customers.

We also think Nanofilm will continue to see higher operating expenses as it
spends to prepare the company for future growth.

TP: Sin$3.92

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... C11B1B4CBD

[behappyalways]

Capital Group no longer substantial shareholder of Nanofilm with further stake sale
https://www.theedgesingapore.com/capita ... stake-sale