- Nanofilm released 3Q26 update with limited financials. 9M26 revenue and gross profit were within our expectations, at 70%/74% of our FY26e forecasts respectively.
- 3Q26 revenue inched up 3% YoY to S$74mn. Advanced Material - Consumer (AMC) revenue dropped 19% YoY to S$39mn, due to delays in key customer Z’s flagship programme and substrate changes. This was offset by a 120% growth in Nanofabrication (NFBU) revenue to S$12mn, driven by a new health sensor programme in smart watches. Industrial Equipment (IEBU) revenue also surged 66% to S$7mn, driven by delivery of new orders of PCB drill bit equipment.
- We maintain BUY with an unchanged TP of S$1.20. Our FY26e revenue/PATMI forecasts are unchanged. Nanofilm’s flagship smartphone programme reached full capacity in late-3Q26 and is expected to drive 4Q26e growth. We believe FY27e growth will be driven by the smartphones, PCB drill bit equipment, and coatings in semiconductor such as for wafer lapping carrier and anti-static discharge (ASD).
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