After meeting with Nanofilm’s management, Tng understands there is anticipation among consumers over the upcoming launch. “we inferred from our discussions that as NANO currently has a big market share in coating tablets for Customer Z, it could potentially become a beneficiary should the new tablets become a hit among consumers, and that demand for wearables remains robust to date.”
He continues to expect the 3C segments of smartphones, computers and wearables to drive it's earnings growth in FY2021 ending December.
Separately, he noted that on Apr 9, Nanofilm exercised its option to purchase the property at 11 Tai Seng Drive in Singapore from G.W.T International for a total consideration of $30.4 million in cash, funded through internal resources and bank borrowings.
“We understand from management that the new building will house all-important technology and competencies and Nanofil, will continue to invest in capex in FY2021.” Tng says.
Tng also noted that the company had new markets under development, including new energy, biomedical, aerospace and Internet of Things optics, according to its FY2020 annual report.
Nanofilm has also completed the construction of its Shanghai Plant 2 with total construction costs amounting to $27 million in FY2020.
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He notes with Shanghai Plant 2 being operational since Feb 8, 2021, it has added 66,406 square meters of additional production space to raise Nanofilm’s total gross floor area across all its production facilities to over 110,000 square meters, according to the company’s FY2020 annual report.
“With the new capacity expansion, we believe Nanofilm continues to be well positioned for wallet share gains for its customers’ products.” he says. Tng also highlighted management intends to distribute at least 20% of its net profits as dividends in FY2021.
Shares in Nanofilm closed 3 cents or 0.58% higher at $5.20 on April 19.
