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CGS-CIMB optimistic on Nanofilm, but lowers revenue expectations as customers face supply chain woes

Lim Hui Jie
Lim Hui Jie1/19/2022 12:13 PM GMT+08  • 3 min read
CGS-CIMB optimistic on Nanofilm, but lowers revenue expectations as customers face supply chain woes
CGS-CIMB has revised its target price for Nanofilm downward, citing supply chain woes for its customers and higher R&D costs.
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CGS-CIMB Research analyst William Tng has maintained his “add” call on Nanofilm, but has lowered his target price for the stock from $4.02 to $3.92.

“Our FY2020-2023 earnings per share (EPS) compound annual growth rate (CAGR) is 22.25% and a target price-to-earnings ratio (P/E) of 22.25 times will translate into a P/E-to-growth ratio of 1.0 times,” writes Tng in a Jan 18 report.

“We ascribe a 15% premium to this multiple (for its potential growth prospects and proprietary technology) and value the company at 25.59 times FY2023 EPS, leading to a lower target price of $3.92 (previously $4.02 using 30.44 times FY2022 EPS),” he adds.

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