NANOFILM Technologies, which specialises in advanced materials and coatings, on Wednesday (Nov 2) reported a revenue growth of 10 per cent for the nine months ended Sep 30, compared to the same period last year.
This is despite the challenging operating environment resulting from macroeconomic headwinds, supply-chain disruptions and a slowdown in customers' capital investment, the mainboard-listed company said in exchange filings.
"While the near-term operating environment remains challenging, the group is taking various revenues and operating cost optimisation measures to cushion the impact," it said.
To do so, the company has identified several key strategic areas it will focus on.
The first is an expansion of production facilities in "strategic locations". Nanofilm said this includes its plans to set up a second production facility on a 40,000 square metre plot in Hanoi, near its existing one in Tan Truong Industrial Zone. The acquisition of the land-use rights is expected to conclude in the first quarter of next year.
Nanofilm is also looking into expanding its business in green energy as well as hydrogen fuel.
It added that it will continue its investment in research and development to strengthen its deep-tech platform and is expected to maintain its commitment to expend more than 5 per cent of its revenue on this.
These are expected to deliver growth in the three key end-markets of consumer, industrial and new energy, Nanofilm said.
It is also expected to deliver its offerings through multiple business models such as equipment, coating as a service, components and value chain integration.
Overall, the company expects these efforts to drive its revenue to S$500 million and its profit to S$100 million by 2025.
Nanofilm reported a net profit of S$18.8 million in the first half year ended Jun 30, up 5.1 per cent from the corresponding period the year before.
Its revenue for the same six-month period was S$111.3 million, 15.2 per cent higher than the year-ago period.
Nanofilm shares closed at S$1.79 on Wednesday, down S$0.08 or 4.28 per cent from the day before.