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

• Market Cap: HK$6.13B
• Dividend Yield: N/A
• Average Volume (3M): 10.87M
• Price to Earnings (P/E): 23.3
• Beta (1Y): 0.67
• Revenue Growth: 52.49%
• EPS Growth: 27.79%
• Country: HK
• Employees: 901
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.12
• Shares Outstanding: 1,238,870,100
• 10 Day Avg. Volume: 4,891,839
• 30 Day Avg. Volume: 10,874,045
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$5.50
• Price Target Upside: 9.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: HK$5.50 ▲(9.56% Upside)

The company shows strong financial performance with robust revenue growth and low leverage, which are key strengths. However, concerns about cash flow management and a high P/E ratio indicating potential overvaluation weigh down the overall score. Technical indicators show positive trends but limited momentum.

Global New Material International Holdings Limited Business Overview & Revenue Model

Company Description

Global New Material International Holdings Limited (6616) is a leading company in the materials sector, primarily focused on the development, production, and distribution of advanced materials. The company's core products include pearlescent pigments and synthetic mica, which are used in a variety of industries such as automotive, cosmetics, and consumer electronics. Global New Material International is headquartered in China and has established a strong presence in both domestic and international markets.

How the Company Makes Money

Global New Material International Holdings Limited generates revenue through the production and sale of its advanced materials, particularly pearlescent pigments and synthetic mica. These products are utilized by various industries to enhance the aesthetic and functional properties of end-products. The company leverages its technological expertise and manufacturing capabilities to produce high-quality materials that meet the specific needs of its clients. Additionally, partnerships and collaborations with industry leaders and manufacturers further bolster its revenue streams, allowing the company to expand its market reach and client base.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.65B	1.06B	916.82M	669.73M	569.11M
Gross Profit	884.66M	528.33M	455.33M	334.62M	284.06M
EBITDA	584.05M	369.55M	324.45M	230.10M	221.64M
Net Income	242.18M	181.58M	223.79M	162.03M	148.17M
Balance Sheet
Total Assets	7.05B	5.16B	3.16B	2.60B	1.59B
Cash, Cash Equivalents and Short-Term Investments	3.41B	3.21B	1.88B	1.57B	747.58M
Total Debt	2.43B	908.04M	497.81M	159.92M	168.26M
Total Liabilities	2.70B	1.07B	613.54M	261.72M	246.99M
Stockholders Equity	3.38B	3.16B	2.36B	2.17B	1.18B
Cash Flow
Free Cash Flow	-717.25M	121.34M	-44.06M	36.76M	-71.92M
Operating Cash Flow	272.09M	283.22M	181.48M	147.34M	96.57M
Investing Cash Flow	-1.55B	-55.07M	-330.12M	-147.36M	-166.39M
Financing Cash Flow	1.50B	1.25B	305.93M	817.93M	257.56M

Global New Material International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.02
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6616, the sentiment is Neutral. The current price of 5.02 is below the 20-day moving average (MA) of 5.30, above the 50-day MA of 4.97, and above the 200-day MA of 3.98, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 43.40 is Neutral, neither overbought nor oversold. The STOCH value of 36.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
0746	78 Outperform	HK$4.13B	7.27	9.36%	5.79%	-3.73%	6.09%
6616	68 Neutral	HK$6.13B	23.35	7.43%	―	52.49%	27.79%
Sector *	58 Neutral	HK$18.06B	5.32	-7.29%	3.79%	-4.08%	-48.58%
2198	58 Neutral	HK$2.25B	3.78	11.49%	―	47.32%	492.76%
1702	57 Neutral	HK$825.86M	9.00	4.75%	2.41%	-13.75%	-56.14%
0609	54 Neutral	HK$1.18B	16.14	2.75%	3.73%	-11.89%	-69.45%
9933	48 Neutral	HK$1.55B	104.76	2.19%	―	17.98%	374.19%

Global New Material International Holdings Limited Corporate Events

Global New Material International Completes Strategic Acquisition for Expansion

Global New Material International Holdings Limited has completed the acquisition of the Worldwide Surface Solution Business, marking a significant step in its international expansion strategy. This acquisition enhances the company’s product portfolio and competitiveness, particularly in the automotive and cosmetics markets, while strengthening its supply chain and operational efficiency through additional production facilities in Germany, Japan, and the United States.

Global New Material International Secures Shareholder Approval for Key Agreement

Global New Material International Holdings Limited announced the results of its Extraordinary General Meeting (EGM) held on July 21, 2025. The company’s shareholders approved an ordinary resolution related to a specific agreement and its associated transactions, with 100% of the votes cast in favor. This approval allows the company’s directors to execute necessary actions to implement the agreement, which could have significant implications for the company’s strategic operations.

Global New Material International Announces AGM Results, Secures Shareholder Support

Global New Material International Holdings Limited announced the results of its Annual General Meeting held on June 27, 2025. All proposed ordinary resolutions, including the re-election of directors and the authorization for the board to fix directors’ remuneration, were approved by shareholders. The approval of these resolutions reflects strong shareholder support and is expected to positively impact the company’s governance and operational strategies.

Global New Material Announces Changes to Nomination Committee

Global New Material International Holdings Limited has announced changes to its Nomination Committee in response to the amended Corporate Governance Code effective from July 2025. The appointments of Ms. Zeng Zhu and Professor Chen Fadong as new members aim to enhance the committee’s diversity and maintain a majority of independent non-executive directors, potentially strengthening the company’s governance and stakeholder confidence.

Global New Material International Announces Board and Committee Roles

Global New Material International Holdings Limited has announced the composition of its board of directors and the roles within its established committees. The board includes a mix of executive, non-executive, and independent non-executive directors, with committees such as the Audit, Remuneration, and Nomination Committees being chaired by different members. This announcement provides clarity on the leadership structure, potentially impacting the company’s governance and strategic direction.

Global New Material International Holdings Limited Forms Nomination Committee

Global New Material International Holdings Limited has established a Nomination Committee as part of its governance structure, which will be composed mainly of independent non-executive directors. This move is in line with the company’s commitment to comply with the Listing Rules of the Hong Kong Stock Exchange, and it aims to enhance the company’s governance by ensuring diversity and independent oversight in its board nominations.

Global New Material Announces EGM to Approve Strategic Agreement

Global New Material International Holdings Limited has announced an extraordinary general meeting (EGM) scheduled for July 21, 2025, in Guangxi, China. The meeting aims to approve and ratify an agreement and its related transactions, which are expected to impact the company’s operations and strategic direction. Shareholders are encouraged to participate in the voting process, either in person or through proxies, to influence the company’s future course.

Global New Material Announces Capital Injection into Chesir Luzhai

Global New Material International Holdings Limited announced a significant capital injection into its subsidiary, Chesir Luzhai, by Chongqing International. This transaction will result in a dilution of the company’s equity interest in Chesir Luzhai from approximately 52.22% to 47.48%. Despite this dilution, Chesir Luzhai will remain a non-wholly owned subsidiary, and its financial results will continue to be consolidated in the company’s financial statements. The capital increase agreement, subject to certain conditions, is classified as a discloseable transaction under Hong Kong’s Listing Rules, indicating its importance and potential impact on the company’s financial structure and stakeholder interests.