Broker Name: DBS Group Research
Date of Report: 24 April 2026
Excerpt from DBS Group Research report.
Report Summary
- Stock: Nanofilm Technologies International Ltd (Ticker: NANO SP)
- Action: BUY (Rating upgraded from Hold)
- Target Price: SGD 1.65 (12-month target, revised up from SGD 0.68)
- Key Idea: Nanofilm’s proprietary coating solutions are superior and environmentally friendly, with increasing adoption across semiconductors, automotive, and consumer electronics. The company is expanding geographically (China, Vietnam, India, Europe) and diversifying end-markets, reducing reliance on traditional 3C segments.
- Highlights:
- Strong 1Q26 results: Revenue up 24% y/y to SGD 55mn and broad-based growth across segments.
- Gross margin rebounded structurally to 39%, EBITDA margin 26% (vs. 12% a year ago), driven by operating leverage, disciplined cost management, and favourable product mix.
- Net profit forecast sharply upgraded (+95% for FY26F, +107% for FY27F). Earnings expected to double in FY26F and grow another 41% in FY27F.
- Valuation at 30x PE (FY26F/FY27F blended), still below historical average.
- Key risks: Intellectual property protection, cyclical demand swings, supply chain disruptions.
- Implications: Investors are advised to BUY Nanofilm Technologies for its strong earnings momentum, diversified growth drivers, structural margin improvement, and undemanding valuation. Target price is SGD 1.65.
above is an excerpt from a report by DBS Group Research. Clients of DBS Group Research can be the first to access the full report from the DBS website : https://www.dbs.com.sg/
