Nanofilm Technologies (MZH) Q4 2024 earnings summary

Executive summary

• FY2024 revenue reached S$204.3m, up 15.4% YoY, with 2H2024 contributing S$122m, driven by peak production and strong consumer end-market demand.

• Adjusted EBITDA rose 31% YoY to S$52m, and PATMI for 2H2024 was S$11m, up 6% YoY, reflecting improved profitability despite higher depreciation and expansion costs.

• Net profit after tax surged 179.7% YoY to S$7.5m, with PATMI up 147% to S$7.7m.

• Global expansion included new production bases in China, operational facilities in India and Vietnam, and acquisitions in Europe, enhancing market reach and supply chain resilience.

• Cash and cash equivalents decreased to S$110m from S$155.2m, mainly due to investments and acquisitions.

Financial highlights

• Group revenue grew 15.4% YoY to S$204.3m, with Advanced Materials-Consumer up 24% YoY and Advanced Materials-Industrial up 30% YoY.

• Adjusted EBITDA margin improved to 25.4% in FY2024 from 22.3% in FY2023; net margin increased to 3.8% from 1.8% YoY.

• Operating cash flow was S$21.2m, down from S$39.0m, impacted by higher working capital needs.

• Book value as of 31 Dec 2024 was S$430m, with a total cash balance of S$110m.

• Capital expenditure totaled S$37.3m, mainly for plant, machinery, and construction in Vietnam and China.

Outlook and guidance

• Cautiously optimistic for continued recovery in Advanced Materials-Consumer, with growth expected in Asia and Europe, and further diversification in customer base and geographies.

• Advanced Materials-Industrial anticipates growth in 2025, especially in semiconductor and e-mobility, with new projects in Europe and Southeast Asia.

• Equipment sales projected to improve; micro-lens array project to drive Nanofabrication BU.

• Sydrogen aims to double BPP output, commercialize ACFC, and expand maritime power modules, leveraging continued government support in China.

• Focus remains on global site expansion, technological innovation, and renewable energy solutions for sustainable growth.