Highlights

• 3Q26 revenue grew 2% yoy to S$74m, bringing 9M26 revenue to S$187m (+4% yoy), or 68% of our full-year forecast, which we deem in line given a delayed production ramp-up which will see fulfilment in 4Q26.
   
• Gross and EBITDA margins each rose 5ppt yoy to 45% and 32% respectively. Strong NFBU and IEBU growth offset weaker AMBU sales.
   
• The flagship coating programme is now at full capacity, supporting 4Q26. Maintain BUY with a 27% lower target price of S$1.09 (24x 2027F EPS).
   

Analysis

• Margins growth. Nanofilm improved despite modest revenue Technologies International (Nanofilm) reported a 3Q26 revenue of S$74m (+2% yoy). Gross and EBITDA margins rose 5ppt yoy to 45% and 32% respectively, supported by automation and operational optimisation. For 9M26, revenue rose 4% yoy to S$187m, while gross and EBITDA margins improved to 41% and 29%. Management indicated improved profitability, although PATMI was not disclosed.
   
• AMBU weakness partly offset by industrial growth; expect catching up in 4Q26. AMBU accounted for 82% of 9M26 revenue. The consumer subsegment’s revenue fell 19% yoy to S$39m in 3Q26 amid smartphone substrate changes and a supply-chain-related delay in a flagship programme ramp-up until late-3Q26. The industrial subsegment’s revenue grew 8% yoy to S$16m, driven by Europe. The flagship functional coating project has now reached full capacity, supporting a stronger contribution in 4Q26.