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

• Market Cap: HK$13.57B
• Dividend Yield: N/A
• Average Volume (3M): 7.83M
• Price to Earnings (P/E): 63.6
• Beta (1Y): 0.66
• Revenue Growth: 29.64%
• EPS Growth: -3.91%
• Country: HK
• Employees: 901
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.06
• 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: -38.22% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$8.00 ▼(-20.16% Downside)

Global New Material International Holdings Limited shows strong financial performance with robust revenue and profit growth, but liquidity concerns due to cash flow issues. Technical indicators suggest positive momentum, although the stock may be overbought. High valuation limits upside potential.

Positive Factors

Revenue Growth

The substantial revenue growth indicates strong demand for the company's products, supporting its market position and potential for future expansion.

Margin Sustainability

High and improving margins reflect efficient operations and cost management, which are critical for long-term profitability and competitive advantage.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing flexibility for strategic investments and weathering economic fluctuations.

Negative Factors

Cash Flow Concerns

Zero cash flow from operations raises concerns about liquidity and the ability to fund operations and growth without relying on external financing.

Earnings Volatility

Negative EPS growth indicates potential earnings volatility, which could affect investor confidence and the company's ability to reinvest in its business.

Cash Generation Ability

Challenges in generating cash could limit the company's ability to invest in R&D and growth initiatives, impacting long-term competitiveness.

Global New Material International Holdings Limited Business Overview & Revenue Model

Company Description

Global New Material International Holdings Limited, an investment holding company, engages in the production and sale of pearlescent pigment products in the People's Republic of China, Asia, Europe, Africa, and South America. The company offers natural mica-based, synthetic mica-based, glass flake-based, and silicon oxide-based pearlescent pigment products. It also produces and sells synthetic mica powder of various granule sizes as raw materials to produce functional fillers, insulating materials, refractory materials, and nickel-hydrogen batteries. The company sells its products under the Chesir Pearl brand name for manufacturers in various industries, such as automotive coatings, cosmetics, industrial coatings, plastics, printing, textile and leather, and ceramics, as well as trading company customers. Global New Material International Holdings Limited was founded in 2011 and is based in Liuzhou, the People's Republic of China.

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: 10.02
• 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 10.02 is above the 20-day moving average (MA) of 9.30, above the 50-day MA of 7.28, and above the 200-day MA of 5.14, indicating a bullish trend. The MACD of 0.82 indicates Negative momentum. The RSI at 80.45 is Negative, neither overbought nor oversold. The STOCH value of 98.64 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
0746	73 Outperform	HK$4.17B	7.34	9.36%	6.70%	-3.73%	6.09%
6616	72 Outperform	HK$13.57B	63.59	5.86%	―	29.64%	-3.91%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1702	59 Neutral	HK$1.11B	15.50	3.61%	2.20%	-8.51%	-68.34%
2198	58 Neutral	HK$3.72B	4.93	13.87%	―	9.20%	213.87%
0609	54 Neutral	HK$1.25B	19.35	2.46%	3.52%	-5.29%	-32.47%
9933	47 Neutral	HK$1.80B	101.14	2.59%	―	11.08%	147.89%

Global New Material International Holdings Limited Corporate Events

Global New Material to Acquire Chesir Pearl Minority Interest

Global New Material International Holdings Limited has entered into a connected transaction to acquire Chesir Pearl’s minority interest by issuing consideration shares under a specific mandate. This acquisition, involving Hongzun International, is subject to the reporting and approval requirements of the Hong Kong Stock Exchange’s Listing Rules. An Extraordinary General Meeting (EGM) will be held to approve the transaction, and a circular with detailed information will be dispatched to shareholders by the end of December 2025.

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.

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.