Nanofilm Technologies International Ltd. (MZH) AI Stock Analysis

• Market Cap: S$495.31M
• Dividend Yield: 0.87%
• Average Volume (3M): 2.75M
• Price to Earnings (P/E): 65.3
• Beta (1Y): 1.42
• Revenue Growth: 15.39%
• EPS Growth: 140.82%
• Country: SG
• Employees: 2,390
• Sector: Technology
• Sector Strength: 90
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.01
• Shares Outstanding: 663,443,100
• 10 Day Avg. Volume: 4,185,330
• 30 Day Avg. Volume: 2,750,470
• PEG Ratio: 6.55
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -30.55
• 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$0.48
• Price Target Upside: -36.84% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: S$1.00 ▲(31.58%Upside)

The overall stock score is primarily impacted by the mixed financial performance and high valuation concerns. While technical indicators show strong momentum, overbought signals suggest cautious optimism. The lack of earnings call data and notable corporate events limits additional insights.

Positive Factors

Geographical Expansion

Geographical expansion includes new sites in Vietnam, Europe, and India, enhancing trade diversification.

Innovative Solutions

Proprietary coating solutions are superior to peers and environmentally friendly.

Revenue Growth

Nanofilm's revenue increased 12% year-over-year to S$44m, aligning with full-year forecasts.

Negative Factors

Cost Pressure

Full potential of various initiatives not realised yet, with near-term cost pressure remaining.

Gross Margin Decline

Gross margin fell, leading to 1Q25 results being below expectations.

Tariff Risks

There are downside risks to earnings due to trade tariffs, leading to a reiterated Reduce recommendation with a lower target price.

Nanofilm Technologies International Ltd. Business Overview & Revenue Model

Company Description

Nanofilm Technologies International Limited, together with its subsidiaries, provides nanotechnology solutions in Singapore, China, Japan, and Vietnam. The company operates through three segments: Advanced Materials, Industrial Equipment, and Nanofabrication. The Advanced Materials segment offers advanced materials through surface solution services based on its vacuum coating technologies and processes. The Industrial Equipment segment manufactures and sells turnkey equipment systems comprising coating equipment, cleaning lines, and automation systems that are installed at its customers' production lines. This segment also provides customized operating software for its systems and training, as well as spare-parts, customer service, and other forms of after-sales support. The Nanofabrication segment manufactures and supplies nanoproducts, which are used by its customers as components for the smooth functioning and performance of various parts of their end-products. The company is also involved in the marketing and sale of industrial machinery and equipment; research and experimental development on engineering; research and development, engineering, and production hydrogen application and products; manufacture and supply of dies, moulds, tools, jigs, and fixtures; and provision of coating services to end users in the precision engineering and printed circuit boards industry, as well as coating services for precision components and automotive parts. In addition, it engages in solar cell business; the provision of consultation and technical development services; the manufacture and forming of modules; manufacture, processing, and assembly of plastic products; production and sale of auto parts; and trading and sale of electronics and equipment. The company was incorporated in 1999 and is headquartered in Singapore.

How the Company Makes Money

Nanofilm Technologies International Ltd. generates revenue primarily through the sale of its nanotechnology-based coatings and materials. The company has developed a robust revenue model centered around its unique thin-film technology, which is applied to various consumer and industrial products. Key revenue streams include the supply of advanced materials used in the production of electronics components, automotive parts, and precision engineering tools. Additionally, Nanofilm collaborates with major industry players through strategic partnerships and licensing agreements, enabling it to expand its market reach and enhance its technological capabilities. The demand for high-performance, durable coatings fuels the company's earnings, supported by continuous innovation and adaptation to industry trends.

Nanofilm Technologies International Ltd. Financial Statement Overview

Summary

Nanofilm Technologies displays a mixed financial profile. The balance sheet remains stable with manageable debt levels, but income statement results indicate pressure on profitability due to declining profit margins and inconsistent revenue growth. Cash flow challenges, especially negative free cash flow due to high capital expenditures, highlight potential liquidity concerns.

Income Statement

Nanofilm Technologies shows mixed performance in its income statement. The gross profit margin remains healthy, though it has decreased in recent years, indicating tighter cost management. The net profit margin has fluctuated, with a notable decline in recent years, reflecting potential issues in profitability. Revenue growth has been inconsistent, with some years showing decline. EBIT and EBITDA margins have shown volatility, highlighting operational challenges.

Balance Sheet

The balance sheet of Nanofilm Technologies is relatively strong with a stable equity base. The debt-to-equity ratio remains manageable, although it has increased recently. ROE has shown volatility, suggesting fluctuations in shareholder returns. The equity ratio indicates a solid equity position relative to assets, supporting financial stability.

Cash Flow

Cash flow performance is mixed, with challenges in maintaining positive free cash flow in recent years. Operating cash flow to net income ratio indicates reasonable cash generation from operations. However, negative free cash flow highlights high capital expenditures relative to cash generated, potentially impacting liquidity.

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

Nanofilm Technologies International Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:MZH, the sentiment is Positive. The current price of 0.76 is above the 20-day moving average (MA) of 0.67, above the 50-day MA of 0.61, and above the 200-day MA of 0.68, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 79.02 is Negative, neither overbought nor oversold. The STOCH value of 89.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
MZH	64 Neutral	S$495.31M	65.25	2.02%	0.87%	15.39%	140.82%
Sector *	63 Neutral	$34.70B	5.15	-11.38%	1.67%	5.54%	-17.15%
VEMLF	―	$2.80B	15.49	8.59%	0.64%	―	―
8AZ	75 Outperform	S$501.67M	12.55	12.72%	13.06%	-50.75%	-61.46%
E28	66 Neutral	S$691.89M	18.87	8.89%	1.61%	6.93%	14.19%
JLB	64 Neutral	S$312.15M	28.13	8.66%	0.33%	43.32%	96.93%
AWX	57 Neutral	S$529.61M	46.17	2.40%	―	-20.96%	―

Nanofilm Technologies International Ltd. Corporate Events

Nanofilm Technologies Holds Annual General Meeting, Reinforces Strategic Direction

Nanofilm Technologies International Ltd. held its Annual General Meeting on April 25, 2025, where the Executive Chairman, Dr. Shi Xu, welcomed shareholders and expressed gratitude for their support. The meeting, attended by key directors and shareholders, marked the company’s commitment to transparency and stakeholder engagement, reinforcing its strategic direction and operational focus for the financial year ending December 2024.

The most recent analyst rating on (SG:MZH) stock is a Hold with a S$0.63 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 Governance with New Audit and Risk Committee

Nanofilm Technologies International Ltd. has announced the formation of an Audit and Risk Committee by merging its existing Audit Committee and Board Risk Committee, effective June 1, 2025. This strategic move is aimed at streamlining governance, integrating oversight of financial and risk matters, utilizing director expertise effectively, and enhancing accountability and communication within the board.

The most recent analyst rating on (SG:MZH) stock is a Sell with a S$0.60 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 Reports Strong Q1 2025 Growth Amid Market Challenges

Nanofilm Technologies International Ltd. reported a 12% year-on-year revenue growth for the first quarter of 2025, reaching S$44 million. This growth was primarily driven by the Advanced Materials Business Unit and the Nanofabrication Business Unit, with the former contributing 89% of the Group’s revenue. Despite market uncertainties, the company’s diversified business portfolio and production capabilities have laid a strong foundation for sustainable long-term growth.

The most recent analyst rating on (SG:MZH) stock is a Sell with a S$0.60 price target. To see the full list of analyst forecasts on Nanofilm Technologies International Ltd. stock, see the SG:MZH Stock Forecast page.