Nanofilm Technologies International Ltd. (MZH) AI Stock Analysis

• Market Cap: S$446.43M
• Dividend Yield: 0.98%
• Average Volume (3M): 3.41M
• Price to Earnings (P/E): 34.3
• Beta (1Y): 1.67
• Revenue Growth: 22.66%
• EPS Growth: 83.49%
• Country: SG
• Employees: 2,390
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.02
• Shares Outstanding: 663,443,100
• 10 Day Avg. Volume: 3,177,980
• 30 Day Avg. Volume: 3,414,063
• PEG Ratio: 0.44
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 2.42
• P/FCF Ratio: -17.12
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: S$0.71
• Price Target Upside: 4.41% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: S$0.50 ▼(-26.47% Downside)

The overall stock score of 56 reflects moderate financial performance with stable revenue growth but challenges in profitability and cash flow. Technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Revenue Growth

Stable revenue growth indicates a consistent demand for Nanofilm's products, supporting long-term business sustainability and market presence.

Operational Efficiency

Improved operational efficiency enhances profitability potential, enabling the company to better manage costs and improve margins over time.

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, allowing for strategic investments and growth opportunities.

Negative Factors

Profitability Challenges

Low profitability margins suggest difficulties in cost management and pricing power, which could hinder long-term financial performance.

Cash Flow Issues

Negative cash flow impacts the company's ability to fund operations and growth initiatives, potentially leading to liquidity constraints.

Low Return on Equity

Low ROE reflects inefficient use of equity capital, which could deter investors seeking higher returns and affect long-term investment attractiveness.

Nanofilm Technologies International Ltd. Business Overview & Revenue Model

Company Description

Nanofilm Technologies International Ltd. (MZH) is a leading provider of advanced nanotechnology solutions, specializing in the development and production of innovative coatings and surfaces. The company operates primarily within the semiconductor, electronics, and optical industries, offering a wide range of products such as anti-reflective coatings, anti-fingerprint coatings, and other functional materials that enhance the performance and durability of various applications. With a strong focus on research and development, MZH aims to deliver cutting-edge solutions that meet the evolving needs of its global clientele.

How the Company Makes Money

Nanofilm Technologies International Ltd. generates revenue primarily through the sale of its specialized coatings and materials to various industries, including electronics, optics, and semiconductors. The company has established key revenue streams from product sales, which include both standard offerings and customized solutions tailored to specific client needs. Additionally, MZH may engage in long-term contracts and partnerships with major manufacturers and technology firms, allowing for a steady flow of income. The company also invests in research and development to innovate new products, which can lead to additional revenue opportunities as they tap into emerging markets and applications. Strategic collaborations and partnerships with industry leaders further enhance its market reach and contribute to its earnings.

Nanofilm Technologies International Ltd. Financial Statement Overview

Summary

Nanofilm Technologies International Ltd. exhibits moderate financial health with stable revenue growth and operational efficiency improvements. However, profitability and cash flow generation remain areas of concern. The balance sheet is strong, with low leverage and a solid equity base, but overall returns on equity are low. The company should focus on enhancing profitability and cash flow to strengthen its financial position further.

Income Statement

Nanofilm Technologies International Ltd. has shown a moderate revenue growth rate of 9.52% in the latest year, recovering from a decline in the previous period. The gross profit margin remains stable at around 37%, but the net profit margin is relatively low at 3.79%, indicating challenges in converting revenue into profit. The EBIT and EBITDA margins have improved, suggesting better operational efficiency, but still lag behind historical performance.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.27, reflecting prudent financial leverage. However, the return on equity is low at 1.99%, indicating limited profitability relative to shareholder equity. The equity ratio is strong, suggesting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Operating cash flow has decreased, and free cash flow remains negative, indicating cash management challenges. The operating cash flow to net income ratio is below 1, suggesting that not all earnings are translating into cash. The negative free cash flow to net income ratio highlights the need for improved cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	228.77M	204.27M	177.02M	237.41M	246.69M	218.34M
Gross Profit	83.16M	75.87M	65.56M	111.39M	122.16M	119.79M
EBITDA	58.94M	53.00M	39.38M	77.97M	96.11M	91.10M
Net Income	13.10M	7.74M	3.13M	43.81M	62.20M	57.62M
Balance Sheet
Total Assets	615.07M	635.09M	621.50M	617.87M	644.92M	548.89M
Cash, Cash Equivalents and Short-Term Investments	95.94M	110.21M	155.21M	156.53M	182.53M	226.50M
Total Debt	104.77M	105.68M	105.76M	46.57M	46.11M	42.27M
Total Liabilities	202.89M	205.14M	197.50M	153.39M	169.94M	108.46M
Stockholders Equity	370.86M	387.86M	379.87M	418.79M	429.60M	430.84M
Cash Flow
Free Cash Flow	-13.76M	-28.88M	-24.29M	10.29M	-34.50M	-21.67M
Operating Cash Flow	20.34M	21.22M	39.05M	72.42M	73.20M	59.02M
Investing Cash Flow	-49.74M	-59.09M	-54.93M	-68.89M	-119.81M	-80.50M
Financing Cash Flow	-8.94M	-7.46M	25.49M	-27.91M	-4.90M	222.30M

Nanofilm Technologies International Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:MZH, the sentiment is Negative. The current price of 0.68 is below the 20-day moving average (MA) of 0.69, below the 50-day MA of 0.75, and above the 200-day MA of 0.66, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 40.79 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:MZH.

Nanofilm Technologies International Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
V03	74 Outperform	$4.33B	18.52	8.32%	6.00%	-7.55%	-7.10%
8AZ	72 Outperform	S$513.24M	12.84	12.72%	16.79%	-50.75%	-61.46%
E28	71 Outperform	S$683.34M	17.56	9.11%	1.62%	11.57%	0.89%
AWX	63 Neutral	S$579.75M	42.53	2.87%	―	4.60%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JLB	61 Neutral	S$317.24M	32.58	7.60%	0.32%	47.45%	51.05%
MZH	56 Neutral	S$446.43M	34.25	3.50%	0.98%	22.66%	83.49%

Nanofilm Technologies International Ltd. Corporate Events

Nanofilm Technologies’ Strategic Acquisition at Discounted Valuation

Nanofilm Technologies International Ltd. addressed shareholder inquiries ahead of its Extraordinary General Meeting, revealing that the proposed acquisition of a target company is at a significant discount compared to a previous deal valuation in 2021. The company clarified that the goodwill on the target’s balance sheet, amounting to approximately $50 million, is attributed to expected business synergies, anticipated revenue growth, and the value of the assembled workforce, which are expected to enhance future market development.

The most recent analyst rating on (SG:MZH) stock is a Hold with a S$0.71 price target. To see the full list of analyst forecasts on Nanofilm Technologies International Ltd. stock, see the SG:MZH Stock Forecast page.

Nanofilm Technologies Streamlines Operations with Subsidiary Liquidation

Nanofilm Technologies International Ltd. has announced the voluntary liquidation of its subsidiary, Nanofilm Technologies Europe B.V., as part of its strategy to streamline its corporate structure and cut down on compliance and maintenance costs in Europe. This move is not expected to significantly impact the company’s financial performance for the year ending December 2025, and no directors have any direct or indirect interest in the liquidation beyond their shareholdings.

The most recent analyst rating on (SG:MZH) stock is a Hold with a S$0.71 price target. To see the full list of analyst forecasts on Nanofilm Technologies International Ltd. stock, see the SG:MZH Stock Forecast page.

Nanofilm Technologies Achieves 30% Revenue Growth in 1H2025

Nanofilm Technologies International Ltd. announced a robust 30% year-on-year increase in Group revenue for the first half of 2025, reaching S$107 million. This growth was primarily driven by the Advanced Materials Business Unit and Industrial Equipment Business Unit, with the former contributing 84% of the total revenue, underscoring the company’s strong performance and strategic market positioning.

The most recent analyst rating on (SG:MZH) stock is a Hold with a S$0.71 price target. To see the full list of analyst forecasts on Nanofilm Technologies International Ltd. stock, see the SG:MZH Stock Forecast page.

Nanofilm Technologies Announces European Subsidiary Restructuring

Nanofilm Technologies International Ltd. has announced an internal restructuring of its European subsidiaries. This restructuring involves the disposal of shares in AxynTeC Dünnschichttechnik GmbH and Nanofilm AM Germany GmbH to the parent company, as well as the merger of several subsidiaries into Nanofilm AM Germany GmbH. The move is aimed at streamlining operations and optimizing the company’s structure in Europe, potentially enhancing efficiency and market competitiveness.

The most recent analyst rating on (SG:MZH) stock is a Hold with a S$0.71 price target. To see the full list of analyst forecasts on Nanofilm Technologies International Ltd. stock, see the SG:MZH Stock Forecast page.