Nanofilm Technologies (MZH) H2 2024 earnings summary

Executive summary

• FY2024 revenue reached S$204.3m, up 15% YoY; 2H2024 revenue was S$122m, up 17%, supported by peak production and consumer demand.

• Adjusted EBITDA rose 31% to S$51.8m; net margin improved to 3.8% from 1.8%, despite higher depreciation and expansion costs.

• New production bases in China and facilities in India and Vietnam, alongside European acquisitions, expanded capacity, market access and supply-chain reach.

Financial highlights

• Adjusted EBITDA margin improved to 25.4% from 22.3%; gross profit margin was 37.1% versus 37.0% in FY2023.

• Book value was S$430m and cash balance S$110m at 31 Dec 2024; a final dividend of 0.33c per ordinary share was declared.

• Operating cash flow remained positive, while higher sales and year-end receivables increased working-capital requirements.

• R&D and engineering expenses fell to 7.0% of revenue from 9.0%, reflecting a shift toward commercialization.

Segment performance

• AMBU Consumer grew 24% YoY, supported by new and existing 3C customers; AMBU Industrial rose 30%, primarily reflecting AxynTeC contributions.

• Automotive revenue grew 7% YoY as commercial vehicles partly offset lower passenger-car coating sales.

• NFBU revenue increased 12% YoY to S$18.0m, driven by higher allocation of its micro-lens array project.

• IEBU revenue was S$11.3m, down 38.5% YoY amid slower customer expenditure.

• Sydrogen revenue surged 166% YoY, with adoption gaining traction particularly in China.