Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 5.4, indicating a potential upside of 33% from the current price of HKD 4.03 [3][4]. Core Insights - The company has signed an agreement to acquire Merck's global surface solutions business for EUR 660 million (approximately RMB 5.2 billion), which is seen as a significant milestone for future growth [1]. - The acquisition is expected to enhance the company's market share, particularly in high-end applications such as automotive and cosmetics, where Merck holds a 22% global market share in pearlescent pigments [1]. - The report projects net profits for the years 2024, 2025, and 2026 to be RMB 310 million, RMB 400 million, and RMB 510 million, respectively, with corresponding EPS of HKD 0.25, HKD 0.32, and HKD 0.40 [1][7]. Summary by Sections Acquisition Details - The acquisition of Merck's surface solutions business is expected to significantly increase the company's market share and enhance its competitive edge in high-end markets [1]. - The transaction is valued at EUR 660 million, with an EV/EBITDA multiple of 10.6x, which is considered reasonable compared to industry averages [1][8]. Financial Projections - Revenue projections for the company are as follows: RMB 1.06 billion in 2023, RMB 1.53 billion in 2024, RMB 1.76 billion in 2025, and RMB 2.02 billion in 2026, reflecting a growth rate of 16.06% in 2024 and 15.10% in 2025 [2][7]. - The company expects to maintain a gross margin around 49% to 51% over the forecast period [2][7]. Valuation Analysis - The report employs both comparable company analysis and DCF methods for valuation, concluding a target price of HKD 5.4 based on a PE multiple of 22x and a WACC of 7.4% [8][10]. - The DCF analysis estimates the company's market value at HKD 59 billion, supporting the target price of HKD 5.4 [8][10].

Investment Rating - The report maintains an "Outperform" rating for Global New Material International Holdings (6616 HK) with an expected relative benchmark increase of over 10% in the next 12-18 months [3][41]. Core Insights - The company intends to acquire Merck's global surface solutions business for 665 million euros, with the transaction expected to enhance its market coverage, product system, and technological capabilities [1][3]. - The acquisition is based on a valuation of 10.6x the target company's pre-tax profit of 62.7 million euros for the year ending December 31, 2023 [1][3]. - The company has achieved significant results in collaborative integration with CQV, becoming its largest shareholder with a 42.45% stake, which is expected to enhance product synergy and market expansion [1][3]. - The second phase of the pearl material factory has commenced production, with a designed annual capacity of 30,000 tons, focusing on high-end applications [2][3]. - The company invested 75 million RMB in R&D in the fiscal year 2023, representing 7.1% of its operating revenue, and has made advancements in new energy projects in collaboration with Zhejiang University [1][3]. Summary by Sections Acquisition Details - The company announced the acquisition of Merck's global surface solutions business for 665 million euros, with the target company generating 405 million euros in revenue and 62.7 million euros in pre-tax profit for 2023 [1][3]. Collaborative Integration - The integration with CQV has led to improved product collaboration, sales channel synergy, and enhanced R&D capabilities, positioning the company as a leader in the global pearlescent pigment market [1][3]. Production Capacity - The second phase of the pearl material factory is operational, designed to produce high-end automotive and cosmetic-grade materials, utilizing advanced intelligent production systems [2][3]. Research and Development - The company has increased its R&D investment, resulting in new patents and breakthroughs in energy-related projects, contributing to its growth strategy [1][3].

Business Performance - The company achieved a significant milestone in the fiscal year 2023, becoming one of the top three global players in the pearlescent pigment industry by sales volume[5]. - In fiscal year 2023, the company focused on expanding production capacity for pearlescent materials and enhancing R&D capabilities, leading to steady business growth[5]. - The company reported a strong performance in high-end pearlescent materials, synthetic mica, and new energy materials, continuously creating new market opportunities[5]. - In the fiscal year 2023, the company's revenue was approximately RMB 1,064.1 million, an increase of about 16.1% year-on-year[9]. - The net profit for the fiscal year 2023 was approximately RMB 213.3 million, a decrease of about 9.8% compared to RMB 236.5 million in the fiscal year 2022[9]. - The EBITDA for the fiscal year 2023 was approximately RMB 369.6 million, an increase of about 13.9% from RMB 324.4 million in the fiscal year 2022[9]. - Total revenue increased from approximately RMB 916.8 million in the fiscal year 2022 to approximately RMB 1,064.1 million in the fiscal year 2023, representing a year-on-year growth of about 16.1%[18]. - Total sales for the year 2023 reached approximately RMB 1,064.1 million, an increase of about 16.1% compared to RMB 916.8 million in 2022[22]. - Sales of pearlescent pigment products increased from approximately RMB 850.7 million in 2022 to about RMB 964.0 million in 2023, representing a growth of approximately RMB 113.3 million or 13.3%[24]. - Sales of mica functional fillers rose from approximately RMB 644 million in 2022 to about RMB 838 million in 2023, an increase of approximately RMB 19.4 million or 30.2%[25]. Strategic Initiatives - The acquisition of CQV Co., Ltd. in August 2023 marked an important step towards global expansion, integrating operations across products, sales channels, R&D, production, and procurement[6]. - The company has adopted a strategy of "internal development and external expansion," focusing on core business areas and strategic layout[5]. - The internationalization process of the company is accelerating, expanding its collaborative network significantly[6]. - The company aims to achieve its internationalization and group operation goals in 2024, marking a critical year for its strategic development[8]. - The company successfully integrated CQV into its operations post-acquisition, focusing on technology, product, sales channels, and supply chain synergies[15]. - The company aims to strengthen its position as a leading player in the global pearlescent pigment market through enhanced R&D capabilities and market expansion strategies[15]. Research and Development - The company launched 100+ new high-end pearlescent materials in fiscal year 2023, enhancing user experience and value[9]. - Research and development expenses amounted to RMB 75.0 million, representing approximately 7.1% of revenue, with a year-on-year increase of about 4.3%[12]. - The company obtained 16 new patents and applied for 3 additional patents in fiscal year 2023, enhancing its intellectual property portfolio[12]. - The R&D department will focus on three key areas: pearlescent pigments, synthetic mica functional fillers, and new energy battery materials[49]. - The company will increase its investment in R&D and enhance collaboration with universities and research institutions[49]. Financial Position - The company has maintained a high-quality development trend, driven by market-oriented strategies and customer-centric approaches[5]. - The gross profit for the year 2023 was approximately RMB 528.3 million, up about 16.0% from RMB 455.3 million in 2022, maintaining a gross margin of approximately 49.7%[28]. - Financing costs surged by approximately 369.6%, increasing from about RMB 11.0 million in 2022 to approximately RMB 51.4 million in 2023, primarily due to increased interest expenses on bank loans and bonds[33]. - Other income and gains for 2023 amounted to approximately RMB 28.0 million, up from RMB 18.3 million in 2022, mainly due to foreign exchange gains recorded in 2023[29]. - Administrative and other operating expenses increased by approximately 47.3%, rising from about RMB 128.0 million in 2022 to approximately RMB 188.6 million in 2023, largely due to costs associated with the acquisition of CQV[32]. - As of December 31, 2023, the company's cash and bank balances were approximately RMB 3,203.5 million, up from RMB 1,882.7 million on December 31, 2022[57]. - The company's total liabilities to equity ratio increased to approximately 26.2% as of December 31, 2023, compared to 24.1% on December 31, 2022, primarily due to increased bank loans and the issuance of initial bonds[58]. - The company's net assets were approximately RMB 4,085.1 million as of December 31, 2023, compared to RMB 2,543.3 million on December 31, 2022, with net asset value per share increasing to approximately RMB 2.55 from RMB 1.98[59]. Corporate Governance - The board is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[112]. - The company has adopted the principles and code provisions of the Corporate Governance Code as the basis for its corporate governance practices[112]. - The board consists of a balanced mix of executive and non-executive directors, ensuring strong independence and effective decision-making[115]. - The company has established a corporate culture based on four core values: integrity, innovation, leadership, and harmony[109]. - The board has confirmed that it has complied with the standards of the Securities Trading Code throughout the fiscal year 2023[113]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific written terms of reference[126]. - The Audit Committee held three meetings to review the financial performance and reports for the fiscal year 2023, focusing on risk management and internal control effectiveness[127]. - The company has established a shareholder communication policy to promote effective communication with shareholders and encourage active participation in company affairs[151]. Environmental, Social, and Governance (ESG) - The company has actively contributed to sustainable development, with its chairman being selected as one of the "30 ESG Entrepreneurs in the Greater Bay Area" for 2023[5]. - The company emphasizes the importance of effective governance structures for integrating and managing sustainable development within its business[159]. - The board is responsible for overseeing the company's ESG strategies, policies, and performance, regularly analyzing risks and opportunities[159]. - The company achieved a reduction in air pollutant emissions density by 10% per production unit, targeting a 20% reduction in hazardous and non-hazardous waste density, and a 30% reduction in water consumption density by 2027, based on 2021 levels[181]. - The company has established an Environmental, Social, and Governance (ESG) committee to identify environmental risks and opportunities, setting clear environmental goals[182]. - The company has received a gold rating from EcoVadis for its sustainability efforts, evaluated across 21 criteria in four main themes: environment, fair labor and human rights, ethics, and sustainable procurement[181]. - The group has identified 28 significant environmental, social, and governance (ESG) issues, categorized into four areas: environment, employment and labor practices, operational practices, and community[173]. - The ESG report follows the guidelines set out in the Securities Listing Rules and is based on four reporting principles: materiality, quantification, balance, and consistency[161]. Risks and Challenges - The company faces significant risks related to reliance on the Chinese and global economies, with potential adverse impacts from any major economic downturns[88]. - Demand and supply levels for pearlescent pigments and synthetic mica powder are influenced by macroeconomic factors and production capacities of other manufacturers, which are beyond the company's control[88]. - The company's financial performance is dependent on effective inventory management, which is susceptible to changes in overall customer demand and consumer preferences[88]. - The company has confirmed that there are no significant uncertainties that may cast doubt on its ability to continue as a going concern[143].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 4.9, indicating a potential upside of 33% from the current price of HKD 3.68 [4][2][8]. Core Insights - The company reported a revenue of RMB 1.06 billion in 2023, representing a year-on-year growth of 16%. However, the net profit attributable to shareholders decreased by 18.9% to RMB 180 million due to increased administrative and financial expenses [1][2]. - The company has adjusted its net profit forecasts for 2024, 2025, and 2026 to RMB 310 million, RMB 400 million, and RMB 510 million, respectively, with corresponding EPS of HKD 0.25, HKD 0.32, and HKD 0.40 [1][2]. - The new production capacity from the second-phase factory, which commenced operations in February 2024, is expected to enhance market supply, particularly for high-end products [1][2]. Revenue Performance - In 2023, the company achieved a revenue of RMB 1.06 billion, with a comparable growth rate of 13% after excluding the impact of the CQV acquisition [1][2]. - The sales volume of pearlescent pigments reached 18,700 tons, a 4% increase year-on-year, with an average selling price of RMB 52,000 per ton, up 8.9% [1][2]. Cost and Profitability - The administrative expenses rose by 47% to RMB 188 million, while financial expenses increased by RMB 40 million to RMB 51 million, primarily due to the acquisition of CQV and the establishment of a new M&A team [1][2]. - The gross profit margin for 2023 was approximately 49.7%, with a net profit margin of 20% [3][14]. Future Growth Prospects - The company anticipates rapid growth in its Korean operations following the acquisition of CQV, which has alleviated raw material supply constraints and reduced costs [2][1]. - The second-phase factory is expected to contribute an additional 6,000 tons of pearlescent pigment production in 2024, enhancing the company's ability to meet market demand [1][2]. Valuation Analysis - The report employs both comparable company analysis and DCF methods for valuation, assigning a PE multiple of 20x based on expected high growth and market conditions [8][10]. - The estimated market value of the company is projected to be HKD 5.0 billion, corresponding to a target price of HKD 4.9, reflecting a 33% upside potential [8][10].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因依賴該等內容 而引致的任何損失承擔任何責任。 GLOBAL NEW MATERIAL INTERNATIONAL HOLDINGS LIMITED 環球新材國際控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：06616） 截至二零二三年十二月三十一日止年度 全年業績 | --- | --- | |-------|----------------------------------------------------------------------------------------------------------------------------------------------| | | | | | 董事會欣然宣佈本集團二零二三年財政年度的全年業績如下： | | － | 收益為約人民幣 1,064.1 百萬元，較二零二二年財政年度的約人民幣 916.8 百 | | | 萬元增加約 16.1% 。 | | － | 毛利為約人民 ...

CHESIK GLOBAL NEW MATERIAL INTERNATIONAL HOLDINGS LIMITED 环球新材国际控股有限公司 (於開曼群島註冊成立的有限公司) 股份代號：06616 中 期 報 告 2023 | --- | --- | --- | |-------|-------|------------------------------| | | | 目 錄 | | | 2 3 5 | 公司資料 主席報告 業務回顧 | | | 8 | 財務回顧 | | | 19 | 業務前景 | | | 21 | 獨立審閱報告 | | | 23 | 簡明綜合損益表 | | | 24 | 簡明綜合損益及其他全面收益表 | | | 25 | 簡明綜合財務狀況表 | | | 27 | 簡明綜合權益變動表 | | | 28 | 簡明綜合現金流量表 | | | 29 | | | | 39 | 其他資料 | 簡明綜合財務報表附註 10-3 環 球 新 材 國 際 控 股 有 限 公 司 2023 中 期 報 告 公司資料 | --- | --- | |--------------------------------- ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因依賴該等內容 而引致的任何損失承擔任何責任。 GLOBAL NEW MATERIAL INTERNATIONAL HOLDINGS LIMITED 環球新材國際控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：06616） 截至二零二三年六月三十日止六個月 中期業績 | --- | --- | |-------|--------------------------------------------------------------------------------| | | | | | 董事會宣佈本集團二零二三年上半年的中期業績，如下： | | － | 收益為人民幣 464.3 百萬元，較二零二二年上半年的人民幣 382.0 百萬元增加 | | | 21.5% 。 | | － | 毛利為人民幣 224.5 百萬元，較二零二二年上半年的人民幣 195.6 百萬元增加 | | | 14.8% ；及二零二三年上半年的毛利率為 48.4% ， ...

4 CHESIK GLOBAL NEW MATERIAL INTERNATIONAL HOLDINGS LIMITED 环球新材国际控股有限公司 (於開曼群島註冊成立的有限公司) 股份代號：06616 号 目 公司資料 02 主席報告 04 業務回顧 07 財務回顧 11 業務展望 17 董事會報告 19 企業管治報告 37 55 環境、社會及管治報告 113 董事及高級管理層履歷資料 119 獨立核數師報告 125 綜合損益表 126 綜合損益及其他全面收益表 127 綜合財務狀況表 129 綜合權益變動表 130 綜合現金流量表 132 綜合財務報表附註 194 五年財務概要 錄 環 球 新 材 國 際 控 股 有 限 公 司 2022 年 報 公司資料 | --- | --- | |-------------------------------------------------------------------------------------------|----------------------------------------------------------------------- ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因依賴該等內容 而引致的任何損失承擔任何責任。 GLOBAL NEW MATERIAL INTERNATIONAL HOLDINGS LIMITED 環球新材國際控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：06616） 截至二零二二年十二月三十一日止年度 全年業績 | --- | --- | |-------|------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | 董事會欣然宣佈本集團二零二二年財政年度的全年業績如下： | | － | 收益為人民幣 916.8 百萬元，較二零二一年財政年度的人民幣 669.7 百萬元增 | | | 加 36.9% 。 | | － | 毛利為人民幣 45 ...