Broker: CGS International Securities
Date of Report: March 2, 2026

Excerpt from CGS International Securities report.

Report Summary
• Nanofilm Technologies reported FY25 revenue of S\$245m (+20% yoy), exceeding forecasts, and net profit of S\$12m (+52% yoy), in line with expectations; operational net profit would have been S\$15m excluding a S\$3m equipment write-off.
• The company is optimistic about FY26, targeting double-digit revenue growth, improved margins, and tighter cost controls, with no significant capex planned; main growth drivers include new projects in advanced materials and nanofabrication.
• Target price raised to S\$0.82 (from S\$0.72) on stronger earnings expectations, with a recommendation to “Add” due to projected 25-70% EPS growth over FY26-27.
• Nanofilm demonstrates strong ESG commitment, aiming for a 40% reduction in GHG emissions intensity by 2030, and has received notable awards for technology innovation and sustainable practices.
• Key risks include high customer concentration and potential higher operating costs as the company expands internationally.

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