Nanofilm Technologies International has reported 2HFY2021 earnings of $44.3 million, up 13.2% y-o-y. Revenue in the same period was up 6.8% to $150.1 million.
Earnings for the whole of FY2021 was up 8% to $62.2 million, on revenue of $246.7 million, up 13%.
Compared to 1HFY2021, earnings improved by 145% h-o-h, while revenue was up 55% y-o-y, due to better net margins of 30% for 2HFY2021 versus 19% for 1HFY2021.
Back when the company reported its 1HFY2021 earnings, it unexpectedly announced a slight dip in its profit instead of continuing with hefty growth.
Nanofilm attributes the drop to the combination of higher start-up costs for its expanded capacity in China as well as hiccups in supply chains which led to lower demand for its coating services.
The resignation of its then CEO and COO one after another did not help either.
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The company's share price dropped from a peak of $6.67 last July to $2.87 at the close of Feb 23.
The company’s hydrogen fuel cell joint venture with Temasek, Sydrogen Energy, incurred a net loss of $1 million in its first year in operation.
This year, Nanofilm expects global supply chain bottlenecks to ease to keep pace with the solid underlying customers’ demand.
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The company expects its recently added production capacity to help drive further growth.
It is on the lookout for “synergistic M&As” or partnerships as well.
The company plans to pay a final dividend of one cent, which will bring its total FY2021 payout to two cents, equivalent to 21% of its earnings.
Group CEO Gary Ho says that the company has made investments in production capacity, infrastructure and R&D throughout FY2021.
“Although FY2021 brought its fair share of operational challenges, we were steadfast as a team and have managed to maintain our growth momentum while continually investing in our technologies, new business opportunities, strategic ventures and capacity,” he says.
Nanofilm’s founder and executive chairman Shi Xu says he is confident that the management team led by Ho will drive the business performance, while he focuses more on technologies, innovation and new product offerings for the longer term.
“As a deep-tech company, we see numerous product applications of our technology in various industries.
“We intend to capture these promising opportunities meaningfully with the right technology and product roadmaps,” says Shi, listing new areas such as advanced materials using greener and sustainable composites, engineered optics, and hydrogen fuel cell technologies and components.
Photo: Nanofilm Technologies International
