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

• Market Cap: HK$11.34B
• Dividend Yield: N/A
• Average Volume (3M): 7.83M
• Price to Earnings (P/E): 51.4
• Beta (1Y): 0.59
• 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: 1,248,441,800
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: HK$10.00 ▼(-0.20% Downside)

The score is driven primarily by strong financial performance (rapid growth, high margins, and low leverage). Technicals support the uptrend, though overbought readings add near-term risk. Valuation is the key drag due to a very high P/E and no dividend yield data.

Positive Factors

Revenue growth

Sustained top-line expansion (54.9% YoY) indicates expanding product adoption across industrial customers. Durable revenue growth improves scale economics, supports ongoing R&D and capacity investments, and underpins longer-term market share gains in advanced materials markets.

High and resilient margins

Exceptionally strong gross and operating margins signal product differentiation and pricing power. High margin structure supports reinvestment in innovation, cushions against raw material swings, and enables sustainable profitability even if revenue growth moderates over the next several quarters.

Low leverage and solid equity position

Modest leverage and a substantial equity base provide financial flexibility for capex, M&A or cyclical softness. A stronger balance sheet reduces refinancing risk and preserves optionality to invest in production or R&D, supporting durable strategic initiatives over months to years.

Negative Factors

Cash flow conversion weakness

Reported operating and free cash flow of zero despite strong earnings raises concerns about earnings quality and liquidity. If cash generation doesn't recover, the company may face limits on organic capex, dividend policy, or need for external financing, weakening long-term flexibility.

Declining EPS

Negative EPS growth indicates per-share earnings have contracted, which can reflect margin mix shifts, dilution, or one-time items. Persistent EPS pressure would hinder compounding returns to shareholders and could constrain reinvestment or capital allocation choices over multiple quarters.

Moderate return on equity

A 7.2% ROE is modest given the company's high margins, suggesting a relatively large capital base or suboptimal asset efficiency. If ROE remains low, the company may struggle to deliver strong shareholder returns despite growth, limiting long-term capital allocation effectiveness.

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

Strong income statement and balance sheet (revenue up 54.9%, gross margin 53.6%, improving net margin 14.7%, low leverage with debt-to-equity 0.72 and equity ratio 47.9%) are partially offset by cash flow concerns (operating cash flow and free cash flow both reported as zero).

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: Neutral
• STOCH: Neutral

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 8.56, above the 50-day MA of 8.85, and above the 200-day MA of 5.77, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.22 is Neutral, neither overbought nor oversold. The STOCH value of 71.15 is Neutral, 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	74 Outperform	HK$11.34B	51.39	5.86%	―	29.64%	-3.91%
0746	73 Outperform	HK$4.97B	8.75	9.36%	6.70%	-3.73%	6.09%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0609	61 Neutral	HK$1.51B	23.43	2.46%	3.52%	-5.29%	-32.47%
1702	59 Neutral	HK$1.27B	17.75	3.61%	2.20%	-8.51%	-68.34%
2198	50 Neutral	HK$5.34B	7.46	13.87%	―	9.20%	213.87%
9933	47 Neutral	HK$1.72B	95.45	2.59%	―	11.08%	147.89%

Global New Material International Holdings Limited Corporate Events

Global New Material Completes Chesir Pearl Minority Acquisition via Share Issuance

Global New Material International Holdings Limited has completed the acquisition of the minority interest in its subsidiary Chesir Pearl on 20 January 2026, settling the deal through the issuance of consideration shares under a specific mandate. Following completion, the company’s total issued share capital increased from 1,238,870,132 to 1,248,441,781 shares, with Dr. Su Ertian’s stake rising from 35.48% to 35.98% and the public float marginally diluted, consolidating control of Chesir Pearl within the existing controlling shareholder group and slightly strengthening insider ownership in the listed company.

The most recent analyst rating on (HK:6616) stock is a Buy with a HK$8.50 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 International Completes HK$1 Billion Convertible Bond Issue

Global New Material International Holdings Limited has completed the issuance of HK$1 billion 4.25% convertible bonds due 2027 under its general mandate, following satisfaction of all conditions in the subscription agreement. The bonds have been listed on the Vienna MTF operated by the Vienna Stock Exchange, with approval secured for the listing and trading of the underlying conversion shares in Hong Kong; at an initial conversion price of HK$10.19 per share, full conversion would result in 98,135,410 new shares, representing about 7.34% of the enlarged share capital, implying potential equity dilution but also expanded funding capacity and enhanced financing flexibility for the company.

The most recent analyst rating on (HK:6616) stock is a Buy with a HK$12.50 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 Shareholders Approve Chesir Pearl Minority Interest Acquisition Mandate

Global New Material International Holdings Limited announced that shareholders at an extraordinary general meeting held on 5 January 2026 overwhelmingly approved an ordinary resolution related to the Chesir Pearl Minority Interest Purchase Agreement. The approval authorizes the company to proceed with the acquisition of the minority interest in Chesir Pearl, including the allotment and issue of consideration shares under a specific mandate, and empowers any director to execute all necessary documents and actions to implement the transaction. This vote clears a key procedural hurdle for consolidating ownership in Chesir Pearl, potentially simplifying group structure and enhancing control over that business unit, while modestly diluting existing shareholders through the new share issuance.

The most recent analyst rating on (HK:6616) stock is a Buy with a HK$12.50 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 Calls January EGM to Approve Chesir Pearl Minority Interest Deal

Global New Material International Holdings Limited has convened an extraordinary general meeting (EGM) for 5 January 2026 in Guangxi, China, where shareholders will vote on approving the Chesir Pearl Minority Interest Purchase Agreement and the related issuance of consideration shares under a specific mandate. The proposed resolution would authorise the board to allot and issue these shares and empower any director to execute all necessary documents and actions to complete the transaction, signalling a move to consolidate its interest in Chesir Pearl and potentially streamline group structure and control, subject to shareholder approval.

The most recent analyst rating on (HK:6616) stock is a Buy with a HK$8.00 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 International Proposes HKD 1 Billion Convertible Bonds Issuance

Global New Material International Holdings Limited announced the proposed issuance of HKD-denominated convertible bonds under a general mandate, with an aggregate principal amount of HK$1,000 million. The net proceeds of approximately HK$981 million will be used for working capital replenishment, refinancing existing debt, and general corporate purposes. The bonds are convertible into shares representing about 7.92% of the current total shares, and the company will seek listing on the Vienna MTF. The issuance is subject to conditions in the Subscription Agreement, and shareholders are advised to exercise caution.

The most recent analyst rating on (HK:6616) stock is a Buy with a HK$8.00 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 Prepares for Key Acquisition Approval Meeting

Global New Material International Holdings Limited has announced the closure of its register of members in preparation for an Extraordinary General Meeting (EGM) scheduled for January 5, 2026. This meeting will address the approval of the Acquisition, Chesir Pearl Minority Interest Purchase Agreement, and related transactions. The closure period for the register is from December 30, 2025, to January 5, 2026, during which no share transfers will be registered, ensuring only eligible shareholders can vote at the EGM.

The most recent analyst rating on (HK:6616) stock is a Buy with a HK$8.00 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 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.

The most recent analyst rating on (HK:6616) stock is a Buy with a HK$8.00 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 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.