Difficulty: Moderate 1) How does Nanofilm make money? 2) Historical revenue and profit growth 3) P/E and dividend yield 4) Nanofilm’s P/E vs competitors 5) Our biggest concern: Customer concentration risk Appendix 1: Description of Nanofilm’s three business units Appendix 2: Other risks worth highlighting Appendix 3: Recap of IPO details The InvestQuest’s View: The Good: The company has a solid track record with an established customer base. We should see buying support from retail investors in the short-term, as only S$10m of IPO shares were allocated in the retail offering. Over the longer-term, Nanofilm’s valuation may benefit from a “scarcity premium”, given the lack of mid-large cap tech-related stock alternatives listed in Singapore. The Bad: Lofty valuations and customer concentration risk are our main worries. Nanofilm’s current price implies a P/E of 47x, more than twice that of its listed competitors, despite having a similar historical earnings growth profile...