Excerpts from DBS Group Research report
Nanofilm Technologies (SGX: MZH)
Recovery in supply but end demand dampened Global demand for 3C affected by inflation and rising risk of recession Hiccup in wearables market; weaker outlook for PC market Cut FY22F/23F earnings by 5% each; maintain BUY with lower TP of S$3.70
Recovery in supply but end demand dampened in near term
Nanofilm Technologies was affected by the supply chain disruptions last year while demand was strong. With the worst in supply chain disruptions likely behind us, the group is expected to rebound strongly. However, given the recent weakness in end market demand for electronic devices such as smartphones, wearables, and PCs, we have toned down our earnings projections for FY22F and FY23F by 5% each. Nanofilm has c.63% revenue exposure to the 3C (Consumer Electronics, Communication, and Computers) segment as at 1Q22.
Nanofilm Technologies earnings growth still decent
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