Investment Rating - The report gives a "Buy" rating for the company, with a target price of HKD 5.73, indicating a potential upside of 61% from the current price [6]. Core Viewpoints - The company is a leading player in the pearl pigment materials industry in China, expanding its global presence through strategic acquisitions, including the recent acquisition of Korean company CQV and plans to acquire Merck's surface solutions business in Germany [3][10]. - The demand for pearl materials is growing, with a clear trend towards synthetic mica replacing traditional pigments, driven by their superior optical properties and environmental advantages [4][55]. - The company has established significant technological barriers and competitive advantages through continuous R&D investment, leading to a diverse product matrix and strong market positioning [5][63]. Summary by Sections 1. Company Overview - The company is recognized as a national high-tech enterprise specializing in the R&D, production, and sales of pearl materials and synthetic mica, with over 2,100 product varieties sold to more than 150 countries [3][10]. - Revenue has grown from CNY 441 million in 2019 to CNY 1.649 billion in 2024, with a compound annual growth rate (CAGR) of 30.2% [3][20]. 2. Market Demand and Trends - The global pearl materials market reached CNY 23.5 billion in 2023, with a CAGR of 14.1% from 2016 to 2023, expected to grow to CNY 44 billion by 2030 [4][37]. - Synthetic mica-based pearl materials are gaining market share due to their high purity and durability, with a market share of 17.6% in China as of 2023 [4][55]. 3. Competitive Advantages - The company leads the industry in synthetic mica production technology, with R&D expenditures projected to reach CNY 90 million in 2024, accounting for 5.4% of revenue [5][67]. - The integration of CQV has significantly improved revenue and profitability, with CQV's revenue and net profit increasing by 17.7% and 170.5% respectively in 2024 [5][73]. 4. Financial Projections - Revenue projections for 2025-2027 are CNY 2.201 billion, CNY 2.883 billion, and CNY 3.659 billion, with growth rates of 33.5%, 31%, and 26.9% respectively [6][76]. - Net profit projections for the same period are CNY 335 million, CNY 450 million, and CNY 584 million, with growth rates of 37.7%, 35%, and 29.7% respectively [6][76].
环球新材国际: 中国珠光材料领先企业，开启全球化新征程