$Nanofilm (MZH.SG)$ DBS has kept its "hold" call and target ...

DBS has kept its "hold" call and target price of 63 cents on Nanofilm Technologies International following the company's announcement of a partnership with Shanghai Hydrogen Propulsion Technology to develop a fuel cell power module.

Nanofilm entered the partnership via its subsidiary, Sydrogen, a 65%-owned joint venture with state investment firm Temasek.

Nanofilm entered the partnership via its subsidiary, Sydrogen, a 65%-owned joint venture with state investment firm Temasek.

While the project is an interesting development, Sydrogen is still loss-making, only contributing $1.05 million in revenue to the group in FY2023, representing less than 1% of total revenue.

Meaningful contributions from these new initiatives are only expected from FY2025.