Nanofilm Technologies Shares Drop Amid Weak Outlook
By Yi Wei Wong
Shares of Nanofilm Technologies International fell sharply in early trade, as analysts warned that the company's earnings are likely to weaken in the first half.
The Singapore-listed nanotechnology company's shares fell as much as 7.7% to 1.44 Singapore dollars (US$1.07). They were last down 6.4% at S$1.46 at the midday break, taking week-to-date losses to 9.9%.
A poor outlook for consumer electronics could weigh on Nanofilm's earnings in the first half, CGS-CIMB analyst William Tng says in a note.
The analyst notes that manufacturer Foxconn, which is seen as a bellwether for the consumer-electronics sector, has said that its outlook for the second quarter remains dim amid a "seasonal off-peak period" for the sector. That could also trouble for Nanofilm's earnings.
"With Foxconn reporting a monthly year-on-year revenue decline and Nanofilm's own first-quarter business update, we see risk of the first half being loss-making for Nanofilm," the analyst adds.
CGS-CIMB lowers its 2023-2025 revenue estimates for Nanofilm by 16%-25%. It also downgrades the stock to reduce from hold and cuts the target price to S$1.13 from S$1.57, citing the worsening demand outlook amid global macroeconomic concerns.
Write to Yi Wei Wong at yiwei.wong@wsj.com
(END) Dow Jones Newswires
June 22, 2023 00:23 ET (04:23 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
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