NanoFilm posts 61.1% rise in profit in first report since mainboard listing

NANOFILM Technologies posted a 61.1 per cent rise in net profit to S$57.6 million for the year ended Dec 31, 2020, in its first financial report since listing on the Singapore Exchange mainboard in October 2020.

The improvement outpaced the nanotechnology solutions provider's 52.8 per cent revenue growth to S$218.3 million from S$142.9 million in FY2019. Turnover rose on the back of increased revenue from its advanced materials and nanofabrication business units, and was partially offset by a 10 per cent decrease in revenue from its industrial equipment business unit.

NanoFilm attributed the profit increase to economies of scale and "operational excellence".

Earnings per share was 10.64 Singapore cents, compared to 6.99 Singapore cents in the previous year.

The group said NanoFilm is well-positioned for growth in existing and recently established end-industries, and will continue to strengthen its value proposition through synergistic mergers and acquisitions or strategic partnerships across the product value chain. In the long term, it will pursue new markets in "favourable secular growth trends" for its core technologies.

Its second plant in Shanghai commenced operations in February 2021, increasing the group's total gross floor area across its production facilities to more than 110,000 square metres.

NanoFilm did not declare a dividend for the period under review, citing its prospectus as it stated that "no dividend is recommended post-listing for the current financial period reported on". However, an interim dividend of 1.9 Singapore cents per share was declared prior to listing, and was paid out in cash on July 2.

In FY2019, it paid out a dividend of 1.9 Singapore cents per share.

NanoFilm shares closed at S$4.64 on Friday, down 18 Singapore cents or 3.73 per cent.