Global New Material International Holdings Limited (6616) AI Stock Analysis

• Market Cap: HK$7.46B
• Dividend Yield: N/A
• Average Volume (3M): 7.83M
• Price to Earnings (P/E): 35.0
• Beta (1Y): 0.60
• Revenue Growth: 29.64%
• EPS Growth: -3.91%
• Country: HK
• Employees: 901
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.05
• Shares Outstanding: 1,238,870,100
• 10 Day Avg. Volume: 11,367,600
• 30 Day Avg. Volume: 7,825,235
• PEG Ratio: 0.79
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 3.10
• P/FCF Ratio: -7.97
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$6.19
• Price Target Upside: -7.61% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: HK$7.50 ▲(11.94% Upside)

The company's strong financial performance, characterized by robust revenue growth and solid margins, is a key strength. However, technical indicators suggest the stock may be overbought, and the high P/E ratio indicates a potentially overvalued stock. The lack of current cash flow data and dividend yield also weigh on the overall score.

Global New Material International Holdings Limited Business Overview & Revenue Model

Company Description

Global New Material International Holdings Limited (6616) is a Hong Kong-based company specializing in the research, development, production, and distribution of advanced materials. The company operates primarily in the sectors of new materials and industrial applications, focusing on innovative solutions that cater to a variety of industries including construction, electronics, and renewable energy. Its core products encompass a range of high-performance materials such as composites, coatings, and specialty chemicals that are utilized in manufacturing and construction processes.

How the Company Makes Money

Global New Material International Holdings Limited generates revenue through multiple streams, primarily from the sale of its advanced materials and products to various industrial clients. The company engages in direct sales to manufacturers and enterprises, providing customized solutions that meet specific industry needs. Additionally, Global New Material may partner with other firms for joint ventures or research projects, enhancing its product offerings and market reach. The demand for high-performance materials in sectors like construction and electronics plays a crucial role in driving the company's sales, while ongoing investments in research and development help maintain a competitive edge and foster innovation.

Global New Material International Holdings Limited Financial Statement Overview

Summary

Global New Material International Holdings Limited demonstrates strong financial health with significant revenue and profit growth, low leverage, and solid margins. However, the absence of current cash flow figures raises concerns about liquidity management.

Income Statement

The company shows strong revenue growth with a substantial increase of 54.9% from the previous year. Gross profit margin stands at a robust 53.6%, reflecting efficient cost management. Net profit margin improved to 14.7%, indicating enhanced profitability. EBIT and EBITDA margins are at 31.8% and 35.4%, respectively, demonstrating solid operational performance.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.72, indicating low leverage and financial stability. ROE is at 7.2%, showing effective use of equity. The equity ratio is solid at 47.9%, suggesting a strong equity position relative to total assets.

Cash Flow

The cash flow statement indicates challenges with operating cash flow and free cash flow both being zero, which could impact liquidity. However, the cash reserves and past positive free cash flow suggest the company has managed cash effectively in prior periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.79B	1.65B	1.06B	916.82M	669.73M	569.11M
Gross Profit	971.34M	884.66M	528.33M	455.33M	334.62M	284.06M
EBITDA	672.88M	584.05M	369.55M	324.45M	230.10M	221.64M
Net Income	197.31M	242.18M	181.58M	223.79M	162.03M	148.17M
Balance Sheet
Total Assets	8.25B	7.05B	5.16B	3.16B	2.60B	1.59B
Cash, Cash Equivalents and Short-Term Investments	3.70B	3.41B	3.21B	1.88B	1.57B	747.58M
Total Debt	3.00B	2.43B	908.04M	497.81M	159.92M	168.26M
Total Liabilities	3.27B	2.70B	1.07B	613.54M	261.72M	246.99M
Stockholders Equity	3.45B	3.38B	3.16B	2.36B	2.17B	1.18B
Cash Flow
Free Cash Flow	-1.39B	-641.15M	121.34M	-44.06M	36.76M	-71.92M
Operating Cash Flow	8.91M	272.09M	283.22M	181.48M	147.34M	96.57M
Investing Cash Flow	-1.90B	-1.55B	-55.07M	-330.12M	-147.36M	-166.39M
Financing Cash Flow	2.12B	1.50B	1.25B	305.93M	817.93M	257.56M

Global New Material International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6616, the sentiment is Positive. The current price of 6.7 is above the 20-day moving average (MA) of 5.01, above the 50-day MA of 4.81, and above the 200-day MA of 4.34, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 81.02 is Negative, neither overbought nor oversold. The STOCH value of 88.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6616.

Global New Material International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6616	70 Outperform	HK$7.46B	34.96	5.86%	―	29.64%	-3.91%
0746	69 Neutral	HK$4.08B	7.18	9.36%	6.97%	-3.73%	6.09%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1702	60 Neutral	HK$1.21B	16.88	3.61%	1.85%	-8.51%	-68.34%
9933	59 Neutral	HK$2.36B	132.95	2.59%	―	11.08%	147.89%
2198	57 Neutral	HK$2.78B	3.69	13.87%	―	9.20%	213.87%
0609	54 Neutral	HK$1.22B	18.94	2.46%	3.73%	-5.29%	-32.47%

Global New Material International Holdings Limited Corporate Events

Global New Material International Announces Redemption of Convertible Bonds

Global New Material International Holdings Limited has announced the redemption of its US$40,000,000 9.0% convertible bonds upon their maturity on 8 November 2025. The company has deposited sufficient funds for the redemption, and following this, the bonds will be cancelled. The company states that this redemption will not have a material impact on its financial position.

The most recent analyst rating on (HK:6616) stock is a Buy with a HK$7.00 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.

Global New Material Increases Stake in CQV to Boost Global Strategy

Global New Material International Holdings Limited has increased its shareholding in its subsidiary, CQV Co., Ltd, from 42.45% to 50.75%. This move aims to enhance the company’s control over its overseas assets, improve global operational synergies, and stabilize market expectations, which could boost investor confidence and corporate valuation.

The most recent analyst rating on (HK:6616) stock is a Hold with a HK$5.00 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.

Global New Material Reports Revenue Growth but Decline in Profits for 1H2025

Global New Material International Holdings Limited reported its interim results for the first half of 2025, showing a revenue increase of 17.7% to approximately RMB912.0 million compared to the same period in 2024. Despite the revenue growth and an improved gross profit margin of 52.0%, the company experienced a significant decline in profit, with a 31.1% decrease in profit for the period and a 41.9% decrease in profit attributable to owners, primarily due to increased finance costs. The board decided not to declare any interim dividend for the period.

The most recent analyst rating on (HK:6616) stock is a Hold with a HK$5.00 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.

Global New Material’s Subsidiary CQV Reports Steady Financial Performance

Global New Material International Holdings Limited announced the unaudited financial results of its subsidiary, CQV Co., Ltd., for the first half of 2025. CQV reported a slight increase in net profit compared to the previous year, with total revenue remaining stable. The financial data suggests a steady performance, which may impact stakeholder confidence and the company’s industry positioning.