reports
- Heidi Mo Jinghui
- John Cheong Ming Chern
Nanofilm Technologies International : 1Q24: Revenue In Line But Still ...
Nanofilm’s 1Q24 revenue of S$39m (+19% yoy) is in line with expectations at 20% of our full-year estimate, but earnings are still in the red. AMBU saw a 41% yoy growth due to a 51% growth in the 3C sector and a 24% growth in the automobile sector. Gross margin rose 3ppt yoy due to increased contribution from the 3C and industrial segments. Maintain SELL with a 6% lower target price of S$0.56 after cutting our 2024 EPS. Nanofilm is trading at 18x 2024F PE vs 14x for Singapore peers.
- Anas Fitri Bin Ahmad
- Arsit Pamaranont
- Benjaphol Suthwanish
- Ceilica Su Rui
- Damon Shen
- Heidi Mo Jinghui
- Jack Goh Tooan Orng
- Jieqi Liu
- Jo Yee Ng
- John Cheong Ming Chern
- Johnny Yum Chung Man
- Jonathan Koh
- Julia Pan Mengyao
- Kenny Yong Hui Lim
- Ming San Soong
- Posmarito Pakpahan
- Shirley Wang Xueyi
- Stella Guo Yuting
- Tanaporn Visaruthaphong
- Ziv Ang Sze Champ
Regional Morning Meeting Notes: Wednesday, April 24, 2024
GREATER CHINA Strategy China And Hong Kong Property A comparison between H-REITs and C-REITs. Results China Tourism Group Duty Free (601888 CH/BUY/Rmb71.72/Target: Rmb106.20) 1Q24: Core profit grew 0.2% yoy; inventories improving; expect further gross margin expansion. iFlytek (002230 CH/HOLD/Rmb41.97/Target: Rmb40.00) FY23 and 1Q24: Earnings missed; dividend of Rmb1.00 for every 10 shares. Jonjee Hi-Tech Industrial & C...
002230 IFLYTEK CO. LTD. CLASS A
600872 JONJEE HI-TECH INDUSTRIAL AND COMMERCIAL HOLDING CO. LTD. CLASS A
BBCA PT BANK CENTRAL ASIA TBK
NANO NANOCO GROUP
300124 SHENZHEN INOVANCE TECHNOLOGY CO. LTD CLASS A
601888 CHINA TOURISM GROUP DUTY FREE CORPORATION LIMITED CLASS A
2318 PING AN INSURANCE (GROUP) COMPANY OF CHINA LTD. CLASS H
2899 ZIJIN MINING GROUP CO. LTD. CLASS H
KREIT KEPPEL REIT
SCI SCI E&C
WHA TB WHA CORP PCL
SCGP SCG PACKAGING PCL
AZTECH AZTECH GLOBAL LTD
Nanoco Group: 3 directors
Three Directors at Nanoco Group sold 4,708,623 shares at between 24p and 24p. The significance rating of the trade was 80/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two y...
- Richard Williamson
Nanoco Group - Mechanisms for shareholder returns confirmed
Following receipt of the £58.8m second tranche from the Samsung litigation on 24 January, Nanoco plans to return £30m to shareholders via a tender offer (c 38.5% of outstanding shares), alongside a £3m share buyback. After completing this £33m return and repaying c £5m outstanding debt, Nanoco expects to have c £23m cash to accelerate commercial production of nanomaterials at scale. With its validated technology, robust pipeline and strong financial position, we believe the group is positioned t...
- Richard Williamson
Nanoco Group - Steps on the pathway to volume production
Nanoco’s trading update confirms that H124 revenues and EBITDA are anticipated to be in line with company expectations. The main new information is that the company has commenced the build and fitout of a new 300m wafer device facility to accelerate product development and test cycles with both existing and new clients. This gives Nanoco scope to grow development revenues in the near term and reduce time to market of new production materials, while aligning the development platform with infrastr...
- Richard Williamson
Nanoco Group - Another major milestone delivered
Following a successful proof of concept, Nanoco recently announced a new joint development agreement (JDA) with its existing European customer, now confirmed as STMicroelectronics. This milestone further validates Nanoco’s smart materials capabilities, building on the first commercial orders for first-generation materials shipped in late 2023 and the expanded partnership with its Asian customer. With an improved financial position, Nanoco has been able to proactively invest in accelerating the d...
- Richard Williamson
Nanoco Group - First commercial order fulfilled – major milestone
Nanoco’s announcement that it has fulfilled its first commercial order heralds the company’s transition from a development-stage company to a commercial supplier of quantum materials. The order provides support for our FY24 forecasts and is a key milestone on the company’s pathway towards becoming self-financing in FY25, with the potential to scale up significantly beyond that, if design wins in high-volume sensing applications can be secured.
- Richard Williamson
Nanoco Group - Asian customer moves to the next phase
Nanoco Group has signed a new two-year joint development agreement (JDA) with its existing major Asian chemical partner to optimise and scale up production of Nanoco’s second-generation quantum dot materials for infrared sensing applications. This marks the company’s latest milestone on its path to becoming a commercial provider of nanomaterials to the sensing market and provides support for our FY24 forecasts.
- Richard Williamson
Nanoco Group - Pathway to commercial production
FY23 was a turbulent but ultimately pivotal year for Nanoco. The US$150m Samsung settlement (US$90m net costs) will fund the planned £33–40m return to shareholders with the retained c £20m providing good support to make the transition from development to commercial production. The company’s first commercial order is expected this calendar year. While volumes are expected to be relatively modest, this is a key milestone, and successful delivery should ease the pathway to follow-on orders and new ...
- Richard Williamson
Nanoco Group - Returning cash and investing in the business
Nanoco has announced its intention to return £33–40m of the funds won through the settlement with Samsung to shareholders, retaining £20m to execute its growth and intellectual property (IP) licensing strategy. Management expects to start this programme after it has received the second $75m tranche in February 2024 from the Samsung litigation. Operationally, multiple end-customer trials via Nanoco’s major partner are ongoing and it is seeing renewed interest from the display market. The group al...
- Richard Williamson
Nanoco Group - Concentrating on organic business going forward
Nanoco’s H123 revenues benefited from the successful delivery of technical milestones for its European electronics customer, taking it close to full production validation of two different wavelength materials for use in sensing chips. Shortly after the period end, Nanoco signed the final agreements to settle the litigation with Samsung. The settlement frees management to concentrate on getting the company ready for volume production in anticipation of receiving its first production order later i...
- Richard Williamson
Nanoco Group - Litigation settlement concluded
Nanoco Group has signed the final agreements to settle the litigation with Samsung on a no-fault basis for the alleged infringement of the group's intellectual property (IP), with Samsung paying Nanoco $150m (£125m) in cash. Nanoco’s H123 performance relating to the organic activities was slightly ahead of management’s expectations. We have revised our estimates to reflect both the settlement, which includes £3.0m in licence revenues recognisable in H223 and takes the group from negative to posi...
- Richard Williamson
Nanoco Group - Context on no-fault settlement of litigation
Nanoco’s regulatory news release gives more information on its proposed settlement with Samsung and adds useful context in the face of speculation on investor forums and share price volatility after the 6 January no-settlement announcement. Nanoco expects to issue another update when it completes the final binding agreement within the next 30 days. We leave our estimates unchanged.
- Richard Williamson
Nanoco Group - Progress in both organic and non-organic activity
During FY22, Nanoco began to scale up its programme to deliver nanomaterials to its major European customer. It also made good progress in its legal action against Samsung for wilful infringement of its IP, with a positive judgement from the inter partes reviews (IPRs) on the five patents in the case. Importantly, the £5.4m raised in June extends the cash runway for nanomaterial development and scale-up activities into CY25, which is beyond the point Nanoco expects organic activities to be self-...
- John Cheong Ming Chern
Tech Manufacturers - Pricing In PE Multiple De-rating Due To Chip War ...
Since the US imposed new restrictions on semiconductor exports to China on 7 Oct 22, industry leaders including AMAT, ASML, Intel and TSMC have started indicating a more challenging outlook. Semiconductor stocks under our coverage (AEM, UMS and Frencken) may not be immediately impacted, but we are reducing our valuation multiple peg to -1SD from mean to price in the valuation de-rating of their major customers and weaker sentiment. Our top picks are Venture and Nanofilm for low semicon exposures...
- Richard Williamson
Nanoco Group - Strengthening customer engagement
Nanoco has announced that a sequence of purchase orders from several existing customers for development work and validation materials means that FY23 revenues are likely to be 20% higher than FY22 rather than at a similar level. We adjust our estimates accordingly, noting that these still exclude any revenues from potential production orders, the value of which will depend on the initial use case and ramp-up timing.
- Richard Williamson
Nanoco Group - Reaching two key milestones in H222
Nanoco’s post-close trading update notes that the FY22 performance was broadly in line with management’s expectations. We therefore leave our estimates unchanged except for adjustments relating to the broker option element of the fund-raising programme in June, which was very significantly oversubscribed, and charges linked to the loan notes issued in July 2021.
- John Cheong Ming Chern
Tech Manufacturers - Focus On Stocks With Diversified Cusomer Base And...
We expect earnings weakness for stocks with huge China exposure (Nanofilm, Aztech, Innotek) due to lockdowns in China since late-1Q22. In contrast, stocks with low China exposure and a diverse customer base should deliver more resilient earnings (Venture, Frencken). Pure semiconductor names (AEM, UMS) should deliver healthy earnings but we are cautious of a slowdown in the semiconductor cycle. Our top picks are Venture and Frencken for their diversified customer base and pricing power.
- Richard Williamson
Nanoco Group - More good news – this time organic business
Nanoco has signed an agreement for a fifth work package from its major European customer. This covers the final phase of a scale-up of a longer wavelength material and development of a third material. It has also completed a placing and subscription raising £2.0m (net) at 37p/share, which extends the cash runway into CY24, and announced a broker option at 37p/share potentially raising up to an additional £3.7m.
- Richard Williamson
Nanoco Group - Samsung versus Nanoco: Round 1 to Nanoco
The ruling by the US Patent Trial and Appeal Board (PTAB) in favour of Nanoco in respect of all 47 claims in the five patents underpinning its litigation against Samsung is unalloyed good news for Nanoco. With the company’s IP confirmed as valid, Nanoco now looks in a much stronger position to pursue its infringement case against Samsung, or a settlement. With Samsung sales of quantum dot televisions estimated at a cumulative 26m by FYE21, success could be a significant upside driver.
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.