Nanofilm Technologies International has set a FY2025 PATMI and revenue target of $100 million and $500 million respectively.
For the most recent full year FY2021 ended Dec 2021, the company reported PATMI of $62.2 million and revenue of $246.7 million.
For its 1HFY2022 ended June, the company reported earnings of $20.9 million, up 16.9% y-o-y; revenue in the same period was up 15.2% y-o-y to $111.3 million.
The company, which focuses on nano-coating technology and services, has outlined growth plans that includes capacity expansion of an existing site it operates in Vietnam, which is on top of its key operating base near Shanghai.
Specifically, Nanofilm’s plans to establish a second production facility on a 40,000 sqm “mega site” near its existing production facility in Tan Truong Industrial Zone.
Following due diligence checks and the execution of definitive agreements, the acquisition of the land use rights is expected to conclude in 1Q2023, which puts its expansion plans “on track”, according to the company on Nov 2.
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In its business update for 9MFY2022 ended Sept, Nanofilm says its revenue was up 10% y-o-y.
The growth was led by its advanced materials business unit (AMBU) and nanofabrication business unit (NFBU), which was offset by a decline suffered by its industrial equipment business unit (IEBU).
This comes amidst lingering effects from 2Q2022’s Covid-19 restrictions observed in Shanghai, which significantly hampered supply chain flows and customers' capital expenditures in 3QFY2022.
Other growth drivers
Besides the new capacity in Vietnam, Nanofim plans to grow by keeping its R&D spend at more than 5% of its revenue, with a focus on areas such as green energy.
Nanofilm had earlier announced it will be providing its “green plating” vacuum coating solutions to the new energy advanced batteries industry in China. It will be doing so with a partner Shenzhen Everwin Precision Technology, via a joint venture called Sichuan Apex Technologies.
The company has also claimed progress made with another joint venture, Sydrogen, which was formed with Temasek Holdings.
This joint venture, which focuses on the new energy hydrogen fuel cell space, recently signed a memorandum of understanding (MOU) with town gas provider City Energy.
Under the scope of the MOU, the parties involved will study the proof of concept of generating an end-to-end hydrogen fuel cell solution for offgrid power supply in Singapore, utilising high-purity hydrogen extracted from City Energy’s gas.
Shares in Nanofilm closed at 8 cents down or 4.28% lower at $1.79 on Nov 2.
