First commercial orders

Nanoco has received its first commercial order for CFQD resin from the company’s film partner, Wah Hong. Just as importantly, the CFQD product is now being evaluated by 13 major OEMs for 16 programmes. This gives confidence that revenues are now set to ramp up, as more programmes progress through the pipeline and shipment volumes increase. We leave our estimates unchanged and highlight that, while it is still early stages, it does not take aggressive assumptions for earnings to scale and the rating to look very inexpensive. We believe a substantial re-rating upwards would be justified as support for our estimates further solidifies.