MZH Revenue is expected to grow modestly from S\$192.7 million in FY24 to S\$230.3 million in FY25 and S\$249.2 million in FY26. However, gross profit margins are forecasted to decline, with FY25 and FY26 margins reduced by 3.5% and 2.2% percentage points, respectively. The company’s EPS for FY24-26 is now projected at S\$0.009, S\$0.032, and S\$0.043, reflecting significant downward revisions of 38.2%, 30.8%, and 20.7% over previous estimates.
The report maintains a “Reduce” recommendation for Nanofilm with a lower target price of S\$0.63, representing an 18.2% downside from the current price of S\$0.77. Key risks include high customer concentration and escalating operating costs. Upside catalysts could stem from new customer orders or accelerated operational progress in its joint ventures.