Capital Group Cos cuts holding in Nanofilm Technologies

Singapore one dollar bill

The Capital Group Companies (CGC) reported Friday its deemed interest in Nanofilm Technologies International declined to 6.61 percent from 7.09 percent after the disposal of around 3.14 million shares at an average S$3.95 each in a market transaction.

The shares sold were owned by accounts under the discretionary investment management of CGS’s units and weren’t held for its own accounts, the company said in a filing to SGX.

CGC is the parent company of Capital Research and Management Co. (CRMC) and Capital Bank & Trust Co. (CB&T). CRMC is a U.S.-based investment management company serving as investment manager to the American Funds family of mutual funds, other pooled investment vehicles, and individual and institutional clients. CB&T  is a U.S.-based investment management company that is a registered investment adviser and an affiliated federally chartered bank.

CRMC also stated its deemed interest in Nanofilm declined to 6.61 percent.

Shares of Nanofilm ended Friday up 0.76 percent at S$3.99 after tumbling from Monday’s high of around S$5.97.

On Wednesday, Nanofilm issued explanations to address concerns raised by analysts and investors after its first half earnings release and the resignation of its chief operating officer, not long after its CEO stepped down, spurred an as much as around 36 percent share price drop earlier this week.

Last week, Nanofilm Technologies reported first half net profit slipped 17.9 percent on-year to S$17.9 million on revenue of S$96.6 million, up 24.2 percent on-year; gross profit margins fell 6.5 percentage points on-year to 46.1 percent, amid higher costs associated with the new Shanghai Plant 2, equipment qualification costs and higher new-product introduction costs, the company said.

On Wednesday, Nanofilm said in an SGX filing that the new Shanghai Plant 2 had incurred higher utility costs related to the rental of diesel power generators and diesel consumption for power, which was required as the application to the Chinese municipal government for high-tension power had taken longer than expected on contractor delays and the associated approval process due to the Covid-19 situation.