Nanofilm’s revenue grows 10% for first 9 months, targets $100m profit by 2025
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Nanofilm plans to expand its production facilities in “strategic locations", including setting up a second facility in Hanoi, near its existing one.
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Sharon See
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SINGAPORE - Nanofilm Technologies International, which specialises in advanced materials and coatings, on Wednesday reported a revenue growth of 10 per cent for the nine months ended Sept 30, compared with the same period in 2021.
This is despite the challenging operating environment resulting from macroeconomic headwinds, supply chain disruptions and a slowdown in customers’ capital investment, the mainboard-listed company said in exchange filings.
“While the near-term operating environment remains challenging, the group is taking various revenue and operating cost optimisation measures to cushion the impact,” it said.
To do so, the company has identified several key strategic areas it will focus on.
One is an expansion of production facilities in “strategic locations”. Nanofilm said this includes its plans to set up a second production facility on a 40,000 sq m plot in Hanoi, near its existing one in Tan Truong Industrial Zone. The acquisition of the land-use rights is expected to conclude in the first quarter of 2023.
Nanofilm is also looking into expanding its business in green energy, as well as hydrogen fuel.
It will continue its investment in research and development as well to strengthen its deep-tech platform and is expected to maintain its commitment to expend more than 5 per cent of its revenue on this.
These efforts are expected to deliver growth in the three key end-markets of consumer, industrial and new energy, Nanofilm said.
The company is also expected to deliver its offerings through multiple business models such as equipment, coating as a service, components and value chain integration.
Overall, the company expects these efforts to drive its revenue to $500 million and its profit to $100 million by 2025.
Nanofilm reported a net profit of $18.8 million in the first half-year ended June 30, up 5.1 per cent from the corresponding period the year before. Its revenue for the same six-month period was $111.3 million, 15.2 per cent higher than the year-ago period.
Nanofilm shares were trading down six cents at $1.73 on Thursday. THE BUSINESS TIMES
