Nanofilm Technologies

[winston]

Brokers' take: Analysts lower Nanofilm target price on weak results, leadership uncertainty

by YONG JUN YUAN

Major customer directed it to allocate more resources to the production of smartphones over tablets and wearables, which have higher margins.

Source: Business Times

https://www.businesstimes.com.sg/stocks ... ncertainty

[winston]

not vested

Nanofilm spends $12.6 million on share buybacks following earnings surprise

Spent $12.6 million to buy back more than 3 million shares these two days

Under its current mandate, Nanofilm can buy back up to nearly 66.2 million shares.

Source: The Edge Singapore

https://www.theedgesingapore.com/news/c ... s-surprise

[winston]

vested

A word from the Chairman

We reiterate our Add call on Nanofilm as the company heads into the seasonally stronger 2H21F.

Management addressed 1H21 performance and reiterated that 2H21F should be seasonally stronger.

Management also highlighted the long-term growth opportunities (subject to gestation period).

TP: Sin$5.05

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... E29A16EA00

[winston]

vested

Nanofilm - SELL (Conference call with chairman)

Management is upbeat on prospects and opined seasonality in 2H21 could be similar or slightly more pronounced compared to 2H20, thus 2H21 revenue could account for 70-80% of 2021 full-year revenue.

With regard to new product introduction, management sees new drivers emerging (eg, handsets and mobile PCs) in 2H21.

In nanofabrication, the sharp decline in profitability in 1H21 should turn up with introduction of Multi-Lens Array (MLA), Fresnel lenses and optical sensors from 4Q21-2022.

We like Nanofilm’s strong product pipeline but see risk of margin contracting since coatings for some of the new products (eg, handsets) are based on more commoditised PVD technology.

Our profit estimates now assume 22% CAGR vs 31% previously.

Source: CLSA

[winston]

vested

Capital Group cuts stake in Nanofilm following 1HFY2021 earnings surprise, share buybacks continues

The Capital Group Companies, a deemed substantial shareholder of Nanofilm Technologies International, has sold nearly 3.14 million shares at an average of $3.95 each.

The selling via the open market was done on Aug 18.

With that, Capital Group has cut its stake to nearly 43.7 million shares, or 6.61%, from 7.09% previously.

Capital Group was one of the more than a dozen cornerstone investors of the IPO.
Temasek Holdings is another substantial shareholder, with a total stake of around 7% held by its various entities.

In total, Nanofillm has spent just over $20 million on share buybacks.

Source: The Edge Singapore

https://www.theedgesingapore.com/news/c ... rise-share

[behappyalways]

Temasek subsidiary reduces stake in Nanofilm at $4.34 per share
https://www.theedgesingapore.com/news/c ... -434-share

[behappyalways]

Temasek's deemed interest in Nanofilm up to 6.04% from 5.93% following open market buying at $3.99 each
https://www.theedgesingapore.com/news/c ... g-399-each

[winston]

Nanofilm Technologies (NANO.SI) - Management Call Takeaway - Growth Fundamentals Affirmed

We had a call with the senior management of Nanofilm following its 1H21 results, post which the shares have materially derated.

Management basically affirmed that the growth intensity of the previous quarters (ex-1H21) is likely to sustain and expects 2H21 seasonality to be at similar level as in 2H20.

We think FY22E growth should as well remain strong, assuming new growth areas that management is pursuing, start contributing as expected.

We maintain our Neutral/High Risk on Nanofilm as we think valuation at 36x FY22E PER (35x PER on consensus estimates) remains justified.

We would wait for high growth to return (which would affirm that the 1H21 weakness was a one off) for again turning positive on the name.

Source: Citi

[behappyalways]

Temasek's Fullerton pares stake in Nanofilm a day after another entity bought
https://www.theedgesingapore.com/capita ... ity-bought

Temasek's deemed interest in Nanofilm up to 6.04% from 5.93% following open market buying at $3.99 each
https://www.theedgesingapore.com/news/c ... g-399-each

[winston]

not vested

Nanofilm - SELL (IF takeaways)

Nanofilm presented in the 2021 CITIC CLSA Flagship Investors’ Forum.

The group session was well attended and questions were mainly focused on its recovery prospects following a weak 1H21.

Investors were keen to know the drivers behind the recovery and the longer-term growth potential for the automotive segment.

There was also keen interest in the group’s foray into hydrogen fuel cells and its profit contribution.

Although management was upbeat on this potential, it remains early to quantify this profit contribution since production is likely to begin in 2023-2024.

Source: CLSA