Nanofilm Technologies (MZH) H2 2023 earnings summary

Executive summary

• FY2023 revenue was S$177.0m, down 25.4% YoY; 2H revenue reached S$103.9m, up 42% HoH and down 18% YoY.

• 2H recovery and cost optimisation supported S$10.8m PATMI and positive operating cash flow; FY2024 guidance targets higher revenue and profits, subject to no major unexpected events.

Financial highlights

• FY2023 PATMI was S$3.1m, down 93% YoY; 2H PATMI recovered to S$10.8m.

• FY2023 EBITDA was S$39.4m, down 51% YoY; 2H EBITDA was S$29.0m, down 32% YoY.

• FY2023 gross profit was S$65.5m versus S$111.5m in FY2022; gross margin was 37.0% versus 46.9%.

• 2H2023 revenue was S$103.9m, down 18% YoY, as the 2H decline narrowed versus 1H.

Outlook and guidance

• FY2024 performance is expected to deliver higher revenue and profits, contingent on no major unexpected events.

• Consumer pipeline includes projects slated for mass production and new NPI-stage programs; a smartphone mass-production project began with a new leading consumer brand.

• Industrial business is expected to remain stable in Singapore, China and Japan, with growth prospects from European expansion.

• Sydrogen BPP coatings production is accelerating for automotive customers.