For FY2025 ended Dec 31, Nanofilm Technologies International reported a 20% y-o-y increase in revenue to $244.6 million, with profit after tax jumping 58.2% y-o-y to $11.9 million.
During the second-half of FY2025, revenue rose 13% y-o-y to $137.4 million. Nanofilm attributes the stronger result to “sustained” demand within the advanced materials business unit (AMBU) and a recovery in the industrial equipment business unit (IEBU).
Gross profit margin for the year declined to 36.2% from the previous year’s 37.1% due to high interim manpower costs to support ramp-ups of new products. As these projects “stabilised”, the company saw “significantly” improved operational performance, with 2HFY2025 gross profit margin rising to 38.9% compared to 32.6% in H1FY2025.
Profit after tax for 2HFY2025 was $10.5 million, down 6% y-o-y. This was attributed to a $3.6 million loss on disposal or write-off of fixed assets and related reinstatement costs arising from the closure of workshops.
On a segmental basis, AMBU, with consumer and industrial segments, contributed the lion’s share of company revenue with $206.9 million, a 20% y-o-y increase. The consumer segment, supported by new and existing 3C (computer, communications, and consumer electronics) customer programmes saw “strong” growth, while the industrial segment benefitted from contributions from European acquisitions and grew 20% y-o-y.
For IEBU, revenue grew by 50% y-o-y to nearly $17 million while revenue for nanofabrication business unit (NFBU) remained steady at around $18.2 million. Nanofilm’s wholly-owned subsidiary, Sydrogen, saw revenue declining by 9.8% y-o-y to $2.5 million.
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Outlook-wise, the company highlighted three areas. Firstly, it is continuing to execute its China Plus One strategy — deepening its presence in China, accelerating expansion in Vietnam and India and advancing its footprint in Europe. Nanofilm says that these initiatives are expected to support higher revenue growth, strengthen client and geographical diversification, and increase penetration into high-growth markets and applications using the its existing product portfolio.
Secondly, on R&D, Nanofilm will be focusing on improving commercialisation conversion in R&D efforts through productisation, ensuring that innovation translates into scalable, market-ready solutions. It will also work on “optimising” R&D spending in focused areas.
Lastly, Nanofilm is seeking to exercise disciplined cost control. With the completion of the main capex cycle, it does not expect significant outlay and will be focusing on increasing returns on existing assets. The company also plans to “intensify” efforts to reduce the loss at Sydrogen.
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Nanofilm is proposing a final dividend of 0.87 cents per share, bringing the full-year dividend to 1.2 cents.
As at 10:26 am on Feb 26, shares in the company are trading at 62 cents, a decrease of 2.5 cents or 3.9% from the previous day.
