Nanofilm Technologies (MZH) Q3 2024 earnings summary

Executive summary

• 3Q2024 revenue reached S$60 million, up 10% year-over-year and 38% sequentially, driven by consumer business and strategic expansion in AMBU and NFBU.

• Group reversed 1H2024 loss, returning to profitability in 3Q2024 and 9M2024, supported by operational excellence and economies of scale.

• Strategic expansion in Vietnam, India, and Europe supports growth and diversification.

Financial highlights

• 9M2024 group revenue totaled S$143 million, up 12% year-over-year.

• 3Q2024 gross profit margin exceeded 40% (vs. 33% in 1H2024); gross profit grew 66% QoQ and 4% YoY.

• 3Q2024 EBITDA margin above 28% (vs. 19% in 1H2024); EBITDA grew 34% QoQ and 17% YoY.

Outlook and guidance

• Growth momentum expected to continue into 4Q2024, with higher revenue and profits anticipated for FY2024 compared to FY2023 barring unforeseen events.

• Lower full-year capex expected, with targeted investments in coating equipment for expansion in Southern China, Europe, and Corporate Lab.

• Sydrogen expects meaningful Tier 3 volume in 4Q2024, supported by China's hydrogen adoption incentives.

• Cost optimisation initiatives underway to improve productivity and efficiency.