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

• Market Cap: HK$5.84B
• Dividend Yield: N/A
• Average Volume (3M): 7.39M
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.65
• Revenue Growth: 52.49%
• EPS Growth: 27.79%
• Country: HK
• Employees: 901
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Chemicals
• EPS (TTM): 0.21
• Shares Outstanding: 1,238,870,100
• 10 Day Avg. Volume: 13,151,921
• 30 Day Avg. Volume: 7,386,282
• PEG Ratio: 1.99
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 94.16
• 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

• Rating: 75 Outperform
• Price Target: HK$5.00 ▲(7.53%Upside)

The company exhibits strong financial performance characterized by significant revenue and profit growth, complemented by positive technical indicators suggesting continued momentum. However, the absence of current cash flow figures poses a risk to liquidity management, and the stock's valuation is moderate, which could limit its appeal to some investors.

Global New Material International Holdings Limited Business Overview & Revenue Model

Company Description

Global New Material International Holdings Limited (6616) is a prominent player in the chemical industry, focusing on the production and distribution of pearlescent pigment products. These pigments are widely used in various applications, including automotive paints, cosmetics, and industrial coatings, enhancing the visual appeal and functionality of products across multiple sectors.

How the Company Makes Money

Global New Material International Holdings Limited generates revenue primarily through the sale of its pearlescent pigment products. The company's business model is centered around manufacturing high-quality pigments that cater to diverse industry needs, such as automotive, cosmetics, and packaging. By maintaining strong relationships with its clients and ensuring a steady supply of innovative and reliable products, the company secures consistent demand and revenue. Additionally, the company may engage in strategic partnerships and collaborations to expand its market reach and enhance its product offerings, further contributing to its financial performance.

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: Positive
• Last Price: 4.65
• 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 Positive. The current price of 4.65 is above the 20-day moving average (MA) of 4.42, above the 50-day MA of 4.02, and above the 200-day MA of 3.77, indicating a bullish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 64.40 is Neutral, neither overbought nor oversold. The STOCH value of 52.23 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	75 Outperform	HK$5.84B	22.22	7.43%	―	52.49%	27.79%
0746	73 Outperform	HK$3.15B	6.43	8.22%	62.63%	-2.46%	20.39%
1702	69 Neutral	HK$1.06B	11.51	4.75%	16.62%	-13.75%	-56.14%
Sector *	58 Neutral	HK$16.18B	4.23	-6.43%	9.52%	-3.39%	-61.30%
0609	54 Neutral	HK$1.05B	13.86	2.75%	3.48%	-11.89%	-69.45%
9933	50 Neutral	HK$1.57B	106.12	2.19%	―	17.98%	374.19%
2198	49 Neutral	HK$2.02B	3.39	11.49%	―	47.32%	492.76%

Global New Material International Holdings Limited Corporate Events

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.

Global New Material International Clarifies 2024 Financial Results

Global New Material International Holdings Limited, a company incorporated in the Cayman Islands, has issued a clarification announcement regarding its audited annual results for the year ended December 31, 2024. The announcement corrects inadvertent errors in the consolidated statement of financial position, specifically on page 5 of the document. The corrections involve adjustments to figures related to equity and liabilities, with the total equity and liabilities for 2024 now stated as RMB 7,054,508,000 compared to RMB 5,155,282,000 in 2023. This clarification ensures stakeholders have accurate financial data, reflecting the company’s financial standing and obligations.

Global New Material International Holdings Schedules 2025 AGM with Key Resolutions

Global New Material International Holdings Limited has announced the scheduling of its Annual General Meeting (AGM) to be held on June 27, 2025. The meeting will cover several key resolutions, including the re-election of directors, authorization of the board to set director and auditor remuneration, and granting mandates for share buy-backs and issuance. These resolutions are crucial for the company’s governance and operational flexibility, potentially impacting shareholder value and market perception.

Global New Material International Reports Strong FY2024 Financial Results

Global New Material International Holdings Limited reported a strong financial performance for the fiscal year 2024, with a 55% increase in revenue to approximately RMB1,648.8 million and a 65.4% rise in gross profit to approximately RMB873.7 million. The company’s profit attributable to owners rose by 33.4% to RMB242.2 million, despite a slight decline in net profit margin from 20.0% to 19.4%. The board decided not to declare a final dividend for the year, maintaining the previous year’s decision. The results reflect the company’s robust growth trajectory and solidify its competitive positioning in the materials industry.

Global New Material International Announces Circular Dispatch Delay

Global New Material International Holdings Limited has announced a further delay in the dispatch of a Circular related to a significant transaction. The company requires additional time to finalize the financial information of the target companies for the year ended December 31, 2024, postponing the dispatch date to on or before June 30, 2025.