tiprankstipranks
Advertisement
Advertisement

Global New Material Flags 2025 Loss on Merck Deal Costs Despite Strong Revenue Growth

Story Highlights
  • Global New Material expects a 2025 net loss despite revenue surging around 72% to 80%.
  • One-off and non-cash costs from the Merck surface solutions acquisition drive the loss as the group targets synergies and long-term growth.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Global New Material Flags 2025 Loss on Merck Deal Costs Despite Strong Revenue Growth

Meet Samuel – Your Personal Investing Prophet

Global New Material International Holdings Limited ( (HK:6616) ) just unveiled an update.

Global New Material International warned that it expects to swing from a 2024 profit to a substantial loss in 2025, with loss attributable to shareholders projected at RMB370 million to RMB390 million despite revenue jumping about 72% to 80% to roughly RMB2.8 billion to RMB3.0 billion. The downturn is largely driven by one-off acquisition-related transaction costs, fair value adjustments, intangible amortisation and integration expenses linked to its purchase of Merck’s global surface solutions business, though most charges are non-cash or non-recurring and the group still anticipates positive EBITDA while pursuing global integration, capital structure optimisation and market expansion to support long-term growth.

Management stresses that the acquisition and integration costs have not materially hurt operating cash flow or daily operations, suggesting the loss is primarily accounting in nature. The company is focusing on unlocking synergies between legacy and acquired operations, strengthening financial resilience, consolidating technological advantages and broadening its global customer base to enhance market share and brand influence while navigating short-term earnings pressure.

The most recent analyst rating on (HK:6616) stock is a Buy with a HK$10.00 price target. To see the full list of analyst forecasts on Global New Material International Holdings Limited stock, see the HK:6616 Stock Forecast page.

More about Global New Material International Holdings Limited

Global New Material International Holdings Limited is a Cayman Islands-incorporated company listed in Hong Kong that operates in advanced materials, with a focus on global surface solutions. The group is expanding internationally following its acquisition of Merck KGaA’s global surface solutions business, aiming to leverage technology, scale and an enhanced customer base to grow its market presence.

Average Trading Volume: 7,550,130

Technical Sentiment Signal: Buy

Current Market Cap: HK$10.09B

For a thorough assessment of 6616 stock, go to TipRanks’ Stock Analysis page.

Disclaimer & DisclosureReport an Issue

Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App
1