Nanofilm Technologies Delivers Robust 3Q2025 Results: Advanced Materials Drive Growth, Expansion Efforts Signal Upside Potential

Key Highlights for Investors

• 3Q2025 Revenue Surges 20% YoY to S\$72 Million: Nanofilm Technologies International Limited (“NTI Nanofilm”) reported a strong third quarter, with revenue climbing 20% year-on-year to S\$72 million. Revenue for the nine months ended September 2025 reached S\$179 million, marking a 26% YoY increase.
• Advanced Materials Business Unit (AMBU) Remains Growth Engine: AMBU contributed the largest share, with revenue up 27% YoY to S\$63 million. Within AMBU, the Consumer segment (mainly 3C: Computer, Communications, Consumer Electronics) rose 30% to S\$48 million, driven by robust demand in Accessories and Wearables.
• Industrial Segment and Automotive Show Strength: Advanced Materials – Industrial segment jumped 33% YoY to S\$7 million, underpinned by Precision Engineering and European business expansion. Automotive grew 6% YoY to S\$7 million, showing resilience in a challenging sector.
• Industrial Equipment and Sydrogen Units Accelerate: IEBU saw a remarkable 38% YoY growth to S\$4 million, reflecting steady equipment sales and after-sales revenue. Sydrogen Energy, focused on hydrogen fuel cell coatings, grew 19% YoY to S\$0.3 million, reflecting accelerating traction in Chinese and European markets.
• Nanofabrication Business Unit (NFBU) Contracts: NFBU experienced a 29% YoY decline to S\$5 million, attributed to lower Micro Lens Array (MLA) volumes in a seasonally softer period.
• Profitability and Margins: Gross Profit Margin (GPM) for 9M2025 was 36%, down slightly from 37% in 2024. However, EBITDA margin improved to 24% from 23% in the prior year, indicating operational leverage on higher revenue.
• Diversified Global Footprint: NTI Nanofilm’s diversified presence and alignment with key customers positions the group to navigate evolving market conditions.

Strategic Initiatives and Future Outlook

• Customer Engagement and European Expansion: The group is actively enhancing customer engagement, optimizing European operations, and broadening its customer base, aiming for deeper market penetration and operational efficiency.
• Next-Generation Product Development: NTI Nanofilm is driving growth through continuous development of next-generation coating equipment and advanced materials applications, reinforcing its innovation leadership.
• AMBU: Successful Ramp-Up and Diversification: AMBU achieved a successful production ramp-up, notably expanding its presence in the watch housing segment across multiple brands and diversifying its manufacturing footprint to meet evolving market demand.
• Industrial Segment: Positive Volume Trends: The segment benefits from a healthy order book in Southeast Asia, sustained demand in China’s automotive and industrial sectors, and robust contributions from European operations.
• IEBU: Strong Equipment Sales Trajectory: Equipment deliveries are ongoing across Asia and Europe, particularly in the Mold Coater business, with after-sales service providing additional revenue stability.
• NFBU: Strategic Programmes and New Product Introduction: NFBU is preparing for new strategic customer programmes, including a major launch at Vietnam Plant 2 in 2026, and continues to engage in new product introduction projects with leading automotive and Korean customers.
• Sydrogen: Fuel Cell Coating Leadership: Sydrogen has solidified its role as a leading coating service provider in China’s fuel cell market and expanded into Europe, offering both advanced coating services and air-cooled fuel cell solutions.

Shareholder Impact: Price-Sensitive Developments

• Continued Revenue and Margin Growth: Persistent double-digit growth in revenue and improved EBITDA margins signal robust business health and operational efficiency. These results could positively impact share price sentiment.
• Expansion into New Segments and Geographies: Successful ramp-up in new product categories (e.g., watch housing) and expansion in Europe and China point to new revenue streams and enhanced market resilience.
• Strategic Launches and Programmes: Preparation for significant strategic customer programmes, such as the Vietnam Plant 2 launch in 2026, may provide further growth catalysts and investor excitement.
• Innovation and Sustainability: NTI Nanofilm’s commitment to next-generation materials and hydrogen fuel cell technologies positions it at the forefront of emerging industry trends—potentially attracting ESG-focused investors and driving future valuation premiums.
• Risks to Monitor: The contraction in NFBU and slight GPM decline are areas to watch, though overall profitability remains intact. Investors should track the effectiveness of new product launches and geographic expansion for sustained momentum.

About Nanofilm Technologies International Limited

Founded in 1999 and headquartered in Singapore, NTI Nanofilm is a global leader in nanotechnology solutions, specializing in advanced coatings, thin-film equipment, nanofabrication, and hydrogen fuel cell innovation. The company serves diverse industries, including electronics, automotive, medical, and industrial applications, with operations spanning Singapore, Vietnam, China, Japan, India, and Germany. Listed on the Singapore Exchange since 2020, NTI Nanofilm emphasizes innovation and sustainability in high-performance coatings and advanced materials.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult a professional advisor before making any investment decisions. The author and publisher are not responsible for any losses arising from reliance on the information provided above.

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