CGS-CIMB analyst William Tng reiterated a Sell rating on Nanofilm Technologies International Ltd. (MZH – Research Report) yesterday and set a price target of S$0.63.
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William Tng has given his Sell rating due to a combination of factors impacting Nanofilm Technologies International Ltd. Despite a notable increase in FY24 revenue and net profit, the company’s performance still fell short of broader market expectations, with net profit significantly below Bloomberg consensus. The outlook for the first half of FY25 remains uncertain, with potential for continued weakness, which could deter investor interest until the second half of the year.
Furthermore, the current share price already reflects anticipated net profit recovery for FY25-26, limiting potential upside. The valuation is based on a lower P/E multiple, considering the slow pace of profit recovery. While there are potential upsides, such as new order wins and faster progress in joint ventures, risks like high customer concentration and increased operating costs due to expansion efforts pose significant challenges.
According to TipRanks, Tng is ranked #2245 out of 9385 analysts.