Nanofilm Technologies (SGX: MZH) was one of the rare bright spots in the Singapore IPO market last year.
The group, which produces advanced materials and nanoproducts for the consumer electronics, communications and automotive industries, offered shares at S$2.59 apiece last October.
Cornerstone investors included Temasek Holdings’ Venezio Investments and Lion Global Investors with a high demand for its shares from the public.
Shares of Nanofilm have soared 150% from its IPO to an all-time high of S$6.53 last month.
However, upon the release of its fiscal 2021 half-year (1H2021) earnings, the group saw its stock plunge 33% in just one week, from S$5.97 to S$3.99.
Is this a buying opportunity for bargain hunters?
Or should investors be justifiably worried by the latest results?
Lower than expected numbers
Nanofilm reported a 24.2% year on year increase in revenue for 1H2021 to S$96.6 million.
However, gross profit only rose by 8.9% year on year as the cost of sales increased faster than revenue....
