Nanofilm Technologies has reported revenue growth of 27% for the 1QFY2022 ended March with growth across all its business units during the quarter.
The Mainboard-listed company’s advanced materials business unit (AMBU) contributed 81% to Nanofilm’s overall revenue. Within the unit, the 3C, or consumer electronics, communication and computers segment contributed 63% to the company’s overall revenue.
Growth in the 3C segment was mainly attributable to the communications and wearables and accessories sub-segments as the market returned to operating in a normalised cycle.
According to Nanofilm, pipeline visibility is strong for the 3C segment as the company enters into its “typical peak season” in the 2HFY2022.
The remaining segments within the AMBU contributed some 17% of revenue in 1QFY2022, led by growth from the automotive segment. Nanofilm says it is also seeing “positive developments” in the automotive segment, including fuel injection systems, battery connectors and other car parts.
The precision engineering and printing & imaging segments also recorded growths during the quarter thanks to demand for the company’s printing imaging, precision engineering tooling and biomedical testing components.
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Meanwhile, Nanofilm’s nanofabrication business unit (NFBU) contributed 6% towards the company’s overall revenue during the quarter. The contribution was led by mass production projects, which include the micro-lens array (MLA) project for wearables’ sensors and a Fresnel lens project for a leading technology company.
According to the company, the business unit is “confident” in leveraging on the large addressable and fast growing markets for sensors and lens moving forward.
Nanofilm’s industrial equipment business unit (IEBU) contributed 14% to the company’s revenue in the 1QFY2022 led by equipment sales projects. According to the company, the business unit is “poised for growth” on the back of an expected increase in industrial production capacity.
Sydrogen, Nanofilm’s joint venture (JV) investment with Temasek subsidiary Venezio Investments, says its production lines in the company’s Shanghai Plant 2 has been qualified by an automotive original equipment manufacturer (OEM). Schedule for initial production is on track.
Sydrogen is expected to post its maiden revenue in the 2HFY2022.
For the FY2022, the company says it is “positive and confident” in its outlook as it continues to boost the adoption of its nanotechnology solutions through its business unit-driven strategy.
It adds that it has been able to continue operations despite the Covid-19-induced lockdown in Shanghai in a closed-loop manufacturing arrangement.
However, it warns that the lockdown may have an impact on its operations should the situation be prolonged.
Inflationary cost pressures were another concern, although the company says it has been able to control the impact of rising costs of raw material for now due to its value-adding process of turning commoditised raw materials into advanced materials of much higher value.
Shares in Nanofilm closed 4 cents lower or 1.43% down at $2.76 on April 19.
