Group 1: Public Utilities and Environmental Protection - The profitability of waste incineration power generation companies has significantly increased, with net profits for major companies like Junxin Co. (+47.6%), Hanlan Environment (+28.1%), and Yongxing Co. (+25.6%) showing substantial growth in Q3 2025 [7][12] - The improvement in cash flow for waste incineration companies is attributed to capacity expansion, increased utilization rates, and enhanced heating services, with profit increments of approximately 80 yuan per ton of waste [8][12] - The biofuel sector has also seen a substantial increase in profitability, driven by rising prices for used cooking oil (UCO), which increased by 16.7%-22.2% year-on-year [10][12] Group 2: Infrastructure and Construction - In the first ten months of 2025, the broad infrastructure growth rate was slightly positive at 1.51%, while narrow infrastructure (excluding electricity) saw a minor decline of 0.10% [19][20] - Significant projects under the "14th Five-Year Plan" are expected to sustain investment resilience, including major constructions like the Yajiang Hydropower Station and the New Tibet Railway [19][20] - The construction sector is recommended to focus on high-dividend and low-valuation stocks, with companies like Sichuan Road and Bridge and Jianghe Group highlighted for their potential [21][22] Group 3: Media and Internet - Apple has introduced a partnership plan for mini-programs, reducing the revenue share for developers from 30% to 15%, which may enhance the growth of Tencent's mini-program ecosystem [24] - The collaboration is expected to drive traffic growth for WeChat, benefiting Tencent's advertising and gaming business [24] - The media industry is advised to focus on new channels and content directions, with a positive outlook on the ongoing industry recovery [34] Group 4: Specialty Materials - Global Pearl Pigments International has emerged as a leader in the pearl pigment industry, with a CAGR of 36.58% in revenue from 2017 to 2024 [35][36] - The company has strategically acquired international brands to penetrate the high-end market and plans to expand its domestic production capacity to approximately 48,700 tons [37][38] - The pearl pigment industry is characterized by high growth potential and low price sensitivity, making it an attractive investment opportunity [36][37]

Core Viewpoint - Global New Materials International (06616) is increasing its stake in its non-wholly owned subsidiary, CQV, from 42.45% to 50.75% to enhance control over overseas core assets and improve global business synergy and governance stability [1] Company Summary - The company's stock rose over 6% in the afternoon trading session, with a current price of 4.79 HKD and a trading volume of 98.22 million HKD [1] - The acquisition of 1.1218 million shares is scheduled between July and October 2025 [1] Industry Summary - Guojin Securities reports that the combined market share of the two leading companies in the pearlescent pigment sector (Global New Materials and Kuncai) exceeds 30% [1] - The firm is optimistic about the company's overseas acquisition of Merck's surface materials business/CQV, aiming to cultivate a global leader in pearlescent pigments [1] - The industry is experiencing simultaneous growth in both volume and price due to capacity expansion and product structure optimization [1] - The pearlescent pigment market has promising prospects in new consumer sectors such as cosmetics and automotive, with a clear trend of synthetic mica replacing natural mica [1]

Group 1 - The core viewpoint of the article highlights the promising prospects of the pearlescent pigment industry, particularly in the cosmetics and automotive sectors, which are expected to drive future growth due to double-digit growth rates and domestic substitution trends [1][2][20] - The company has a combined domestic market share of over 30% in the pearlescent pigment sector, with major players being Global and Kuncai [1][20] - The global market for pearlescent pigments is projected to grow from 23.5 billion yuan in 2023 to 44 billion yuan by 2030, with a compound annual growth rate (CAGR) of 9.4% [20][22] Group 2 - The company has made significant acquisitions, including a 42.45% stake in South Korea's largest pearlescent pigment manufacturer, CQV, for 466 million yuan, which is expected to enhance its market position [2][37] - The acquisition of CQV is projected to yield a revenue of 2.97 billion yuan in 2024, with a year-on-year growth of 18% and a net profit of 460 million yuan, reflecting a substantial increase of 170% [2][39] - The company is also set to acquire Merck's global surface solutions business for 665 million euros, which is anticipated to be completed by July 2025, further solidifying its position in the global market [2][42] Group 3 - The company plans to increase its pearlescent pigment production capacity from 33,000 tons to 48,000 tons in the long term, with the CQV facility contributing an additional 2,600 tons [3][47] - The production capacity expansion is expected to support sales growth, with the company projecting a revenue increase from 3.15 billion yuan in 2018 to 15.28 billion yuan in 2024, representing a CAGR of 30.1% [3][49] - The average selling price of pearlescent pigments is expected to rise from 37,300 yuan per ton in 2018 to 60,200 yuan per ton in 2024, driven by product structure optimization and increased demand in high-end consumer sectors [3][50] Group 4 - The company is focusing on synthetic mica as a substitute for natural mica, which is expected to become a clear trend in the industry [2][32] - Synthetic mica offers advantages such as stable supply, lower environmental impact, and superior properties compared to natural mica, making it increasingly popular in various applications, including cosmetics [2][34] - The company is also exploring potential applications in new energy batteries and building-integrated photovoltaics (BIPV), indicating a diversification of its product offerings [2][30]

Core Viewpoint - Guojin Securities initiates coverage on Global New Materials International (06616) with a "Buy" rating, projecting net profits for 2025-2027 at 275 million, 467 million, and 576 million CNY respectively, corresponding to dynamic PEs of 21x, 12x, and 10x, with a target price of 6.19 HKD for 2026 at a 16x valuation [1] Group 1: Industry Outlook - The pearlescent pigment industry shows promising prospects in cosmetics and automotive sectors, both of which are experiencing double-digit growth rates, driven by domestic substitution trends [1][2] - The combined market share of the two leading domestic pearlescent pigment companies (Global New Materials and Kuncai) exceeds 30%, indicating strong competitive positioning [1] Group 2: Strategic Acquisitions - In January 2023, the company acquired a 42.45% stake in CQV, South Korea's largest pearlescent pigment manufacturer, for 500 million CNY, with CQV projected to generate 297 million CNY in revenue and 46 million CNY in net profit in 2024, reflecting significant growth [2] - The acquisition of Merck's global surface solutions business in July 2025 is expected to enhance the company's supply chain capabilities, addressing key procurement challenges [2] Group 3: Capacity Expansion and Product Optimization - The company currently has a pearlescent pigment production capacity of 33,000 tons, with plans to expand to 48,000 tons, while CQV's production capacity stands at 2,600 tons [3] - The Tonglu factory's synthetic mica production capacity of 100,000 tons is expected to be operational by the second half of 2025, with further expansions anticipated to lower costs and improve margins [3]

Core Viewpoint - Guozheng International maintains a "Buy" rating for Universal New Materials (06616), with projected net profits for 2025, 2026, and 2027 at 270 million, 510 million, and 650 million RMB respectively, indicating a positive outlook for the company [1] Financial Projections - Projected net profits for 2025, 2026, and 2027 are 270 million, 510 million, and 650 million RMB, respectively, with corresponding EPS of 0.19, 0.35, and 0.45 HKD [1] - The target price has been slightly adjusted from 5.4 HKD to 5.5 HKD, representing a 17% upside potential from the current stock price [1] Recent Performance - In the first half of 2025, the company achieved operating revenue of 910 million RMB, a year-on-year increase of 17.7% [1] - Operating profit for the same period was 292 million RMB, reflecting a year-on-year growth of 29.1% [1] - The net profit attributable to shareholders was 62 million RMB, showing a year-on-year decrease of 41.9% [1] Future Outlook - The merger with Merck's Susonity business will be consolidated in the second half of 2025, leading to adjustments in profit forecasts [1] - Increased financial expenses are anticipated due to the merger, but the main business segments, including pearlescent pigments and synthetic mica, are expected to maintain strong cash flow and continue to grow [1]

Core Viewpoint - The acquisition of Merck Group's surface solutions business (SUSONITY) by China's leading synthetic mica company, Global New Materials International, marks a significant shift in the global new materials industry, indicating a transition from "market for technology" to "technology wins market" for Chinese enterprises [2][3][6]. Group 1: Industry Dynamics - The acquisition highlights the contrasting fates of SUSONITY and Global New Materials, with the former struggling due to rising costs and declining market share, while the latter has rapidly expanded its revenue and market presence [6][10]. - The global new materials industry is witnessing a power shift, with Chinese "invisible champions" gaining ground against established European chemical giants like Merck [3][4]. - The synthetic mica market in China has been growing rapidly, with a compound annual growth rate (CAGR) exceeding 20% from 2016 to 2024, driven by demand from downstream industries such as coatings, plastics, inks, automotive, and cosmetics [9][12]. Group 2: Strategic Acquisition - Global New Materials International's acquisition of SUSONITY for €665 million (approximately ¥5.187 billion) is seen as a strategic move to enhance its competitive edge in high-end manufacturing [21][22]. - The acquisition is expected to create synergies between the two companies, leveraging Global New Materials' advanced synthetic mica technology and SUSONITY's established market presence and customer base [17][24]. - The integration of SUSONITY into Global New Materials' operations is anticipated to enhance production capabilities, reduce costs, and improve profitability, particularly in the high-value automotive and cosmetics sectors [18][19]. Group 3: Financial Performance - Global New Materials International has demonstrated strong financial growth, with a revenue CAGR of approximately 27% over the past five years, and a significant increase in revenue to ¥1.649 billion in 2024, representing a 55% year-on-year growth [23]. - The company's gross profit margin reached 53% in 2024, with net profit increasing by 33.4% to ¥242 million, indicating robust operational efficiency and market demand [23]. - The successful integration of the Korean company CQV has further bolstered Global New Materials' financial performance, contributing to its optimistic outlook for the SUSONITY acquisition [23][25]. Group 4: Future Outlook - The merger is expected to create a more collaborative global materials group, enhancing supply chain efficiency and expanding product offerings across various market segments [27][30]. - The strategic focus on synthetic mica aligns with national policies promoting advanced materials, positioning Global New Materials and its subsidiaries for significant growth in emerging markets [7][29]. - The integration of technologies and market channels is likely to establish Global New Materials as a leading player in the global synthetic mica and pearlescent pigment market, reshaping perceptions of Chinese manufacturing on the world stage [30].

Core Viewpoint - The acquisition of SUSONITY by Global New Materials International is a strategic move to enhance its position in the global surface performance solutions market, with a transaction value of €665 million (approximately ¥5.187 billion) [1] Group 1: Acquisition Details - The acquisition includes SUSONITY's production bases and global sales network in Germany, Japan, and the United States [1] - The deal is expected to reshape the competitive landscape of the industry and propel Global New Materials International towards becoming a leader in surface performance solutions [1] Group 2: Strategic Benefits - The product portfolio, supply chain, and regional coverage of Global New Materials International and SUSONITY are highly complementary, which will significantly expand the company's global business reach [2] - SUSONITY holds a 22% global market share in high-end surface solutions, particularly in the automotive and cosmetics sectors, enhancing Global New Materials International's market influence [2] - The acquisition will facilitate access to SUSONITY's established sales network and premium customer resources in Europe, America, and major Asian countries [2] Group 3: Financial Performance and Growth - Global New Materials International has shown strong financial performance, with a projected revenue growth of 55% and a net profit increase of over 33% in 2024, maintaining a gross margin above 50% [3] - The company is also expanding its production capacity, with a new project for 30,000 tons of pearl materials set to launch in February 2024, and a new synthetic mica production base expected to be operational by the end of 2025 [3] Group 4: Future Outlook - The acquisition is seen as a step towards creating a leading enterprise in pearl pigments that combines German precision manufacturing with Chinese innovation [4] - The core team of SUSONITY will remain intact, and existing operations in Germany, the United States, and Japan will continue [4]

Core Viewpoint - The completion of a €665 million acquisition by Global New Materials International marks the largest cross-border merger in China's pearlescent materials industry, reflecting a shift from being a technology follower to a global rule-maker in the cosmetics and industrial pigments sector [2][4]. Company Overview - Global New Materials International is a leader in the global surface performance materials sector, uniquely covering the entire industry chain from raw materials to high-end pearlescent materials, holding the largest market share in synthetic mica [3]. - The acquired company, SUSONITY, specializes in surface solutions for coatings, cosmetics, and industrial applications, holding a significant position in the high-quality market, particularly in the automotive and cosmetics sectors [3]. Strategic Development - The acquisition of SUSONITY is a significant milestone in Global New Materials International's external development strategy, enhancing its global operational system and transitioning from "Asian manufacturing" to "global operations" [4]. - The integration of production bases in Germany, Japan, and the United States is expected to strengthen the company's strategic depth and cyclical resilience [4]. Financial Impact - Following the acquisition, Global New Materials International anticipates long-term revenue and profit growth, reinforcing its global leadership position in the pearlescent pigment market [4]. - In 2024, the company expects a revenue growth of 55% with a gross margin maintained above 50% [3].

Core Viewpoint - The acquisition of Merck Surface Solutions by Global New Materials International is a strategic move aimed at accelerating the company's expansion and reshaping the surface performance materials industry landscape [2][7]. Group 1: Acquisition Details - The acquisition plan was approved unanimously at the shareholders' meeting, with Global New Materials International set to acquire 100% of Merck Surface Solutions for €665 million (approximately ¥5.187 billion), valuing the transaction at 11.08 times the 2023 EBIT [2][6]. - Merck Surface Solutions reported approximately €405 million in revenue and €60 million in EBIT for the fiscal year 2023, holding a significant position in the high-quality pearlescent pigment market, particularly in the automotive and cosmetics sectors [2][3]. Group 2: Strategic Expansion - Global New Materials International has been actively expanding, having previously acquired a 42.45% stake in South Korea's largest pearlescent pigment manufacturer, CQV, in 2023, with plans to increase this stake to 45.11% by 2025 [3]. - The company is also developing a new project in Tonglu, Hangzhou, with an annual production capacity of 100,000 tons of synthetic mica, further enhancing its market presence [3]. Group 3: Synergy and Market Position - The acquisition is expected to create significant synergies beyond mere capacity expansion, including enhanced sales channels, product offerings, and supply chain efficiencies [4][5]. - Merck Surface Solutions' established customer base in high-end markets, including luxury automotive and leading cosmetics brands, will provide Global New Materials International with valuable access to international markets [4][5]. Group 4: Future Integration Plans - The integration of Merck Surface Solutions is anticipated to be completed by July 2025, with a focus on deepening collaboration across various operational dimensions, including production, supply chain, R&D, and human resources [6]. - The strategic acquisition aligns with the trend of consolidation in the pearlescent pigment industry, positioning Chinese enterprises to become global leaders in this sector [7].