“We believe normalcy has returned to its China factories since Jan 2023,” the analysts write.
Nanofilm provides coating for parts used in consumer electronics, and counts major brands in mobile and computing devices as its main customers.
They see the coming FY2024 as a “key” year for the company, given how its increased production capacity in Vietnam will come on stream come 3QFY203.
In addition, Nanofilm’s various joint ventures, such as ApexTech, which provides coating for battery parts used in electric vehicles, and Sydrogen, which coats parts used in hydrogen fuel cells, could start to see some revenue contribution too.
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Nonetheless, there are downside risks from high customer concentration and emerging competition, the analysts caution.
As at 11.09 am, Nanofilm shares traded at $1.42, unchanged for the day, and down 59.31% over the past year.
