Investment Rating - The report assigns a "Buy" rating to the company, with a target price of HKD 7.31, indicating a potential upside of 106.5% from the current closing price of HKD 3.54 [3][7]. Core Insights - The company is a leading domestic producer of pearlescent materials, demonstrating excellent growth and profitability. Its main products include pearlescent materials and synthetic mica, with applications in industrial coatings, plastics, automotive coatings, and cosmetics. The company has shown rapid revenue growth, with a CAGR of 30.54% from 2019 to 2024, and a projected revenue of HKD 1.649 billion in 2024, representing a year-on-year growth of 55.0% [7][11]. - The global pearlescent materials market is steadily expanding, with a market size of RMB 23.5 billion in 2023 and a CAGR of 14.1% from 2016 to 2023. The demand for high-end products, such as synthetic mica pearlescent materials, is particularly strong due to their optical characteristics compared to traditional organic/inorganic pigments [7][34]. - The company possesses significant competitive advantages, including cost reduction through production technology optimization and smart factories, ownership of core technology patents, and strong bargaining power with distributors. Ongoing overseas acquisitions are expected to further enhance performance and mark a deeper global expansion [7][66]. Financial Projections - Revenue is projected to reach HKD 2.194 billion in 2025, with growth rates of 33.1%, 26.3%, and 19.4% for the years 2025 to 2027. Net profit is expected to be HKD 340 million in 2025, with growth rates of 40.4%, 34.4%, and 30.2% for the same period [7][73]. - The company is expected to maintain a gross margin of approximately 53.0% in 2024, with a slight increase in subsequent years due to product structure optimization and supply chain synergies [7][72]. Market Dynamics - The pearlescent materials market is entering a new phase of diversified development, with increasing recognition and acceptance in various applications, particularly in cosmetics and automotive coatings. The market in China is projected to grow significantly, reaching RMB 126.5 billion by 2030, with a CAGR of 10.0% [34][42]. - The company is strategically positioned to benefit from favorable national policies that support the pearlescent materials and synthetic mica industries, enhancing the investment environment and attracting resources [42].
环球新材国际：护城河优势凸显，外延式并购开启发展新篇章-20250414