Nanofilm Technologies International Ltd. (MZH) AI Stock Analysis

• Market Cap: S$423.62M
• Dividend Yield: 1.12%
• Average Volume (3M): 3.41M
• Price to Earnings (P/E): 36.1
• Beta (1Y): 1.49
• Revenue Growth: 22.66%
• EPS Growth: 83.49%
• Country: SG
• Employees: 2,390
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 663,443,100
• 10 Day Avg. Volume: 3,177,980
• 30 Day Avg. Volume: 3,414,063
• PEG Ratio: 0.62
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 1.57
• P/FCF Ratio: 217.84
• 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$0.68
• Price Target Upside: 4.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: S$0.63 ▼(-2.77% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by middling financial performance: revenue recovery and a healthy balance sheet are offset by structurally lower margins and inconsistent free cash flow. Technicals add mild support from improving short-term momentum, while valuation is a headwind due to a high P/E and modest dividend yield.

Positive Factors

Revenue recovery and acceleration

A clear multi-year sales recovery provides a durable foundation for scale: accelerating revenue in 2024–2025 suggests renewed end-market demand and successful customer re‑qualifications. Sustained top‑line growth supports investments in product development and capacity over months to quarters.

Conservative balance sheet and moderate leverage

Low-to-moderate leverage gives the company financial flexibility to fund working capital, capital expenditures, or M&A without forcing rapid deleveraging. A solid capital structure improves resilience to cyclical swings and supports strategic investments over the next several quarters.

Diversified, repeatable revenue streams

Multiple revenue pillars (contract coating services, equipment sales, engineering/qualification, recurring production orders) reduce single-customer risk and create opportunities for sticky, repeat revenue. Qualification cycles can convert project work into recurring volumes across industries.

Negative Factors

Material gross margin compression

A sustained, large decline in gross margin signals structural pressure on pricing, cost base, or product mix. Lower gross margins reduce operating leverage, limit reinvestment capacity, and make it harder to recover historical profitability even if revenue grows, affecting long‑term earnings power.

Volatile and weak free cash flow conversion

Inconsistent free cash flow and near-zero conversion of earnings imply working-capital swings or heavy reinvestment needs. This undermines the quality of reported profits, constrains organic funding for capex/dividends, and raises dependence on external financing for growth initiatives.

Sharply lower returns on equity

A marked decline in ROE reflects weaker profitability and lower capital efficiency. Persistently low returns make it harder to justify reinvestment and can pressure management to pursue restructuring or capital-allocation changes to restore shareholder returns over a multi‑quarter horizon.

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 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

Financials show a real revenue recovery and a solid balance sheet, but profitability remains structurally weaker than 2020–2022 (notable gross margin compression and thin net margin), and free cash flow has been volatile and often negative, lowering earnings quality.

Income Statement

Revenue returned to growth in 2024 and accelerated in 2025, but profitability has structurally reset lower versus 2020–2022. Gross margin has compressed meaningfully (about 55% in 2020 to ~36% in 2025) and net margin remains thin (~4.8% in 2025). Earnings improved from 2023–2025, yet operating profit levels are still well below the prior peak, signaling a recovery that is real but not fully re-established.

Balance Sheet

The balance sheet looks solid with moderate leverage: debt-to-equity sits around ~0.27–0.28 in 2023–2025, with equity consistently large relative to total assets. Debt increased versus 2020–2022 (when leverage was ~0.10–0.11), but overall capitalization remains conservative, providing financial flexibility. The key weakness is that returns on equity have dropped sharply from strong 2020–2022 levels to low single-digits in 2023–2024, reflecting weaker profitability rather than balance sheet stress.

Cash Flow

Cash generation is mixed. Operating cash flow rebounded strongly in 2025 versus 2024, but free cash flow has been volatile and often negative (notably 2020, 2021, 2023, 2024), with only a small positive result in 2025. Free cash flow conversion of earnings is weak (about 0.04x in 2025), implying reinvestment needs and/or working-capital swings are absorbing cash, which reduces the quality and consistency of reported profits.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	244.57M	204.27M	177.02M	237.41M	246.69M
Gross Profit	88.43M	75.87M	65.56M	111.39M	122.16M
EBITDA	57.02M	53.00M	39.38M	77.97M	96.11M
Net Income	11.80M	7.74M	3.13M	43.81M	62.20M
Balance Sheet
Total Assets	640.72M	635.09M	621.50M	617.87M	644.92M
Cash, Cash Equivalents and Short-Term Investments	84.55M	110.21M	155.21M	156.53M	182.53M
Total Debt	121.89M	105.68M	105.76M	46.57M	46.11M
Total Liabilities	170.64M	205.14M	197.50M	153.39M	169.94M
Stockholders Equity	437.70M	387.86M	379.87M	418.79M	429.60M
Cash Flow
Free Cash Flow	1.76M	-28.88M	-24.29M	10.29M	-34.50M
Operating Cash Flow	48.64M	21.22M	39.05M	72.42M	73.20M
Investing Cash Flow	-72.80M	-59.09M	-54.93M	-68.89M	-119.81M
Financing Cash Flow	-1.16M	-7.46M	25.49M	-27.91M	-4.90M

Nanofilm Technologies International Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.65 is above the 20-day moving average (MA) of 0.60, above the 50-day MA of 0.59, and below the 200-day MA of 0.66, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 62.23 is Neutral, neither overbought nor oversold. The STOCH value of 46.11 is Neutral, 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
8AZ	71 Outperform	S$582.70M	14.52	12.72%	17.05%	-50.75%	-61.46%
V03	70 Outperform	S$4.50B	19.84	8.32%	5.94%	-7.55%	-7.10%
E28	65 Neutral	S$923.98M	23.58	9.11%	1.88%	11.57%	0.89%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AWX	59 Neutral	S$911.29M	53.80	2.87%	―	4.60%	―
MZH	54 Neutral	S$423.62M	36.11	3.50%	1.12%	22.66%	83.49%

Nanofilm Technologies International Ltd. Corporate Events

Nanofilm Sets Up Dongguan Joint Venture to Expand Coating Equipment Reach in China

Nanofilm Technologies International Ltd. has entered into a shareholders’ agreement with individual partners Ms. Cheng Xiao Na and Mr. Dai Di Sen, and HeChuang Tech Pte. Ltd. to form a joint venture company in Dongguan, China, named Dongguan Najin Technology Co., Ltd., with a registered capital of RMB 6.5 million. Nanofilm will hold 30.8% of the equity in the limited liability JV, which will be funded in cash over five years by the partners from future dividends and internal resources, and the new entity will focus on marketing, promoting, selling and distributing vacuum coating equipment and related facilities, as well as arranging coating and testing services for customers across multiple high-tech sectors, strengthening Nanofilm’s commercial presence and customer reach in the Chinese industrial and electronics markets.

The most recent analyst rating on (SG:MZH) stock is a Hold with a S$0.55 price target. To see the full list of analyst forecasts on Nanofilm Technologies International Ltd. stock, see the SG:MZH Stock Forecast page.

Nanofilm Deregisters Dutch Subsidiary, Sees No Material Earnings Impact

Nanofilm Technologies International Ltd. has liquidated and deregistered its wholly owned subsidiary, Nanofilm Technologies Europe B.V., under Dutch law, as part of a restructuring of its corporate footprint in Europe. The company stated that the move is not expected to have any material impact on its earnings per share or net tangible asset value for the financial year ending 31 December 2026, and confirmed that its directors have no interests in the deregistration beyond their shareholdings, suggesting the change is largely administrative with limited direct financial implications for stakeholders.

The most recent analyst rating on (SG:MZH) stock is a Hold with a S$0.59 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 Strikes Off Dormant Subsidiary in Corporate Streamlining Move

Nanofilm Technologies International has struck off Nanofilm Ventures Pte. Ltd., an indirect wholly owned and dormant subsidiary, from Singapore’s Register of Companies with effect from 10 January 2026 under Section 344A of the Companies Act 1967. The company stated that the removal of this inactive entity is an administrative streamlining move and is not expected to have any material impact on its consolidated earnings per share or net tangible asset value per share for the financial year ending 31 December 2026, and that none of its directors has any special interest in the decision beyond their shareholdings in the company.

The most recent analyst rating on (SG:MZH) stock is a Hold with a S$0.59 price target. To see the full list of analyst forecasts on Nanofilm Technologies International Ltd. stock, see the SG:MZH Stock Forecast page.

Nanofilm Subsidiary Secures RMB50 Million Working-Capital Loan from China Construction Bank

Nanofilm Technologies International Ltd. has announced that its wholly owned subsidiary, Nanofilm Vacuum Coating (Shanghai) Co., Ltd., has secured a two-year RMB50 million term loan from China Construction Bank’s Shanghai Yangtze River Delta Integration Demonstration Zone Branch, backed by a corporate guarantee from fellow subsidiary Nanofilm Renewable Energy (Shanghai) Co., Ltd. The facility will fund working capital needs at the Shanghai vacuum-coating unit and is not expected to have a material impact on the group’s consolidated earnings or net tangible assets per share for the financial year ending 31 December 2026, with the company also stating that none of its directors has any interest in the transaction 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 Announces Resignation of Company Secretary

Nanofilm Technologies International Ltd. has announced the resignation of Ms. Eunice Hooi Lai Fann as Company Secretary, effective December 17, 2025. The resignation will not disrupt the company’s administrative functions as Mr. Cho Form Po will continue in the role, while the Board has acknowledged Ms. Hooi’s contributions to the company.

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.