Core Viewpoint - Cathay Pacific Haitong maintains a "Buy" rating for Universal New Materials International (06616), projecting net profits of 304 million, 376 million, and 488 million yuan for 2025-2027, with a target price of 5.27 HKD [1] Group 1: Production Capacity and Projects - The company’s second phase of the Seven Color Pearl material factory, with an annual production capacity of 30,000 tons, has gradually commenced production [1] - The infrastructure for the Hangzhou Tonglu project, which will produce 100,000 tons of surface performance materials annually, is nearing completion and has entered the equipment installation phase [1] - These large-scale capacities will further solidify the company's leadership position in global production capacity [1] Group 2: Share Acquisition and Strategic Goals - Between July and October 2025, the company purchased 1,121,800 shares of its non-wholly owned subsidiary CQV, increasing its holdings from 4,390,000 shares (42.45% of CQV's total issued shares) to 5,511,800 shares (50.75% of CQV's total issued shares) [1] - This share acquisition aims to enhance control over overseas core assets, improve global business synergies, and strengthen governance stability [1] - CQV, possessing a mature technology system, quality customer resources, and stable profitability, is a key component of the group's merger and acquisition strategy, supporting the "Materials + Innovation + Full Scenario" overseas expansion strategy [1] Group 3: Strategic Acquisition and Market Expansion - The board of directors announced that the transaction was completed on July 31, 2025, marking a significant step in the group's global layout [2] - The strategic acquisition of global business allows the group to further expand its geographic coverage and sales channels [2] - The integration of complementary businesses will accelerate the group's penetration into key global markets, particularly in the automotive and cosmetics sectors [2]