Nanofilm Technologies International Limited Reports Robust 3Q2024 Performance and Strategic Growth Plans
Nanofilm Technologies International Limited Reports Robust 3Q2024 Performance and Strategic Growth Plans
Nanofilm Technologies International Limited has reported a strong performance for the third quarter of the financial year 2024, showcasing significant growth in revenue and strategic expansions that are likely to positively impact shareholder value.
Key Highlights
The Group reported a revenue of S\$60 million for 3Q2024, marking a 10% year-on-year increase and a 38% growth from the previous quarter. This was primarily driven by the Consumer business segments within the Advanced Materials Business Unit (AMBU) and Nanofabrication Business Unit (NFBU). The 3C segment within AMBU showed remarkable growth, with an 11% year-on-year and 71% quarter-on-quarter increase, reaching S\$37 million.
Performance Insights
The Computer and Communication subsegments within the 3C segment contributed significantly to the growth, averaging a 27% year-on-year increase. However, the Wearables and Accessories subsegment faced challenges due to supply chain issues, leading to a 20% year-on-year decline. Production in this subsegment resumed in mid-September, which is expected to mitigate the impact moving forward.
The NFBU segment also showed strong performance with an 8% year-on-year and 50% quarter-on-quarter growth, reaching S\$8 million, driven by higher allocation for the Micro Lens Array (MLA) project adopted in smart wearables. The Industrial Equipment Business Unit (IEBU) remained flat year-on-year, contributing S\$3 million, with revenue primarily from equipment delivery and after-sales services.
Sydrogen, a subsidiary focused on hydrogen fuel cell technology, reported a staggering 688% year-on-year growth from a modest base, driven by increased production of coatings for hydrogen fuel cell bipolar plates used in the automotive industry.
Strategic Expansions and Future Outlook
Nanofilm has been actively expanding its geographical footprint, aligning with the China Plus One strategy, positioning the company favorably for growth in China and globally. In Vietnam, Plant 2 has begun small scale production of coating services for 3C customers, and development projects for both 3C and NFBU initiatives are progressing. In India, the company is in the qualification phase and expects to start small batch production for a key customer by the end of 4Q2024 or 1Q2025.
The company is also focused on expanding its reach in the European market through AxynTeC, utilizing integrated product offerings to create a robust platform in Europe. This strategy aims to deliver unique solutions to customers in the region, leveraging core technological capabilities.
Financial Performance and Growth Drivers
Nanofilm’s gross profit margin for 3Q2024 was above 40%, up from 33% in the first half of 2024. Comparable gross profit grew by 66% quarter-on-quarter and 4% year-on-year. EBITDA increased by 34% quarter-on-quarter and 17% year-on-year, with the EBITDA margin rising above 28%, up from 19% in the first half of 2024. The company reversed the losses from the first half of 2024, achieving profitability in 3Q2024 and for the nine months ended 30 September 2024.
The global consumer electronics market is showing promising improvement, driven by premiumisation trends and the increasing adoption of generative AI. Advancements in the New Energy sector, particularly Sydrogen’s innovations in hydrogen fuel cell technology, offer significant opportunities as global green clean energy infrastructure continues to evolve.
Shareholder Impact and Conclusion
Nanofilm’s strategic initiatives, strong financial performance, and expansion plans are likely to enhance shareholder value and positively impact share prices. The company is well-positioned to achieve higher revenue and profits in FY2024 compared to the previous year, capitalizing on market trends and leveraging its strategic global positioning.
Investors should take note of the company’s robust growth trajectory, strategic expansions, and promising outlook in key markets, which are expected to drive sustained growth and profitability in the coming quarters.
Disclaimer: The information provided in this article is based on the latest available data from Nanofilm Technologies International Limited’s 3Q2024 business update. Investors are advised to conduct their own research or consult with a financial advisor before making any investment decisions.
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