Investment Rating - The report assigns a "Buy" rating to the company with a target price of 7.81 HKD, indicating a potential upside of 119% from the current price [4][6]. Core Insights - The company has established itself as a leading player in the pearl material industry, with a strong focus on R&D and innovation, and a robust global sales network [2][3]. - The pearl materials market is experiencing rapid growth, driven by increasing demand in various applications, particularly in cosmetics and automotive sectors [2][20]. - The company has demonstrated strong financial performance, with a revenue CAGR of 24.7% from 2019 to 2023, and a gross margin consistently around 50% [2][15]. Summary by Sections Company Overview - Established in 2011, the company specializes in R&D, production, and sales of pearl materials and synthetic mica, with over 2,000 products and a global sales network [2][8]. - The company has received multiple accolades, including "National Green Factory" and "Top 500 Most Valuable Brands in China" [8]. Market Dynamics - The pearl materials industry is rapidly expanding, with China's market size reaching 6.47 billion RMB, accounting for 28% of the global market [2][22]. - Synthetic mica-based pearl materials have seen a CAGR of 31.7% from 2016 to 2023, indicating strong demand growth [2][20]. R&D and Competitive Advantage - The company invests heavily in R&D, with a 40% increase in R&D spending in the first half of 2024, leading to the launch of over 100 new products annually [3][48]. - The company has built a strong technological moat in synthetic mica production, supported by patents and innovative processes [3][57]. Financial Performance - The company achieved a revenue of 1.056 billion RMB in 2023, with a projected revenue of 1.571 billion RMB in 2024, reflecting a growth rate of 48.74% [4][15]. - The net profit for 2023 was approximately 213 million RMB, with a projected net profit of 340 million RMB in 2024, indicating a growth rate of 59.21% [4][15]. Future Outlook - The company is expected to benefit from the ongoing expansion of the pearl materials market, particularly in high-end applications [2][20]. - The acquisition of CQV and the planned acquisition of Merck's surface solutions business are anticipated to enhance the company's market position and operational synergies [3][4].
环球新材国际：研发创新为基，全球化布局大有可为