Core Viewpoint - Global New Materials International Holdings Limited has been recognized for its outstanding performance in globalization, sustainable development, and value creation, winning the "ESG Excellence Investment Value Listed Company Award" and its chairman receiving the "ESG Excellence Influence Business Leader Award" [1] Group 1: Awards and Recognition - The award ceremony for the 2025 Annual Listed Company Excellence ESG Value List was held in Hong Kong, co-hosted by the Global Business Alliance, Hong Kong Business Daily, and Hong Kong Economic Times [1] - The evaluation criteria for the ESG value list include six dimensions: strategic governance, environmental friendliness, social responsibility, value co-creation, innovation leadership, and sustainable development [1] - The dual awards received by Global New Materials International reflect the company's strength and high recognition in the capital market, highlighting its benchmark position in the sustainable development of the new materials industry [1] Group 2: Financial Performance - Global New Materials International has maintained a high-quality growth trajectory, with a compound annual growth rate (CAGR) of 36.58% in revenue from 2017 to 2024, and gross margin increasing from approximately 44% to 53.34% by 2024 [2] - In the first half of 2025, the company achieved revenue of 912 million yuan, a year-on-year increase of 17.7%, while the non-net profit reached 260 million yuan, a significant increase of 54.4% year-on-year [2] - The company's financial performance is attributed to improved governance efficiency and a solid global supply chain, which creates a dual moat for raw material supply and product channel expansion [2] Group 3: Innovation and Product Development - The company is committed to driving industrial upgrades through innovation and aims to provide more sustainable high-performance material solutions [3] - Global New Materials International has established a brand matrix consisting of SUSONITY, CHESIR, and CQV, covering various applications such as cosmetics, automotive coatings, new energy, and high-end industrial manufacturing [3] Group 4: Global Strategy and Operational Efficiency - The ongoing effects of mergers and acquisitions are laying a solid foundation for the long-term development of ESG, with initial establishment of cross-regional collaboration mechanisms and global R&D team technical sharing [4] - The company is enhancing its global production network, with projects like the second phase of the Seven Color Pearl project gradually coming online and the Tonglu synthetic mica project entering the equipment installation phase [4] - A differentiated pricing strategy is being implemented across the three major business platforms, with adjustments ranging from 3% to 30%, optimizing product value and market demand [4] Group 5: Market Position and Future Outlook - The pearl pigment industry is characterized by high growth potential, low price sensitivity, and strong brand moat, making it a rare "strong consumer attribute" sector [5] - Global New Materials International has become an industry leader through strategic vision and cross-border mergers, entering the high-end market and unlocking growth potential [6] - The chairman emphasizes that mergers are not the end but the starting point for collaborative creation, aiming to integrate Asian speed with European precision in various fields [7] - The company aims to deepen ESG practices through technological innovation, capacity upgrades, and global layout, striving for breakthroughs in green materials, beauty technology, automotive coatings, and high-end industrial applications [7]

Core Viewpoint - Global New Materials International Holdings Limited plans to issue HKD 1 billion convertible bonds to support operational funding, refinance existing debts, and general corporate purposes, reflecting its strategic commitment to capitalize on opportunities in the new materials industry and deepen its global layout [1] Group 1: Convertible Bond Issuance - The convertible bonds will have a face value of HKD 2 billion, with actual net proceeds estimated at approximately HKD 981 million after estimated expenses [1] - The initial conversion price is set at HKD 10.19 per share, allowing for the potential conversion into approximately 98.13 million shares, representing 7.92% of the currently issued shares and 7.34% of the total shares post-conversion [1] - The issuance is managed by HSBC and Deutsche Bank, indicating international capital market recognition of the company's growth prospects [1] Group 2: Business Performance - For the first half of 2025, the company reported revenue of HKD 912 million, a year-on-year increase of 17.7%, maintaining a robust double-digit growth rate [2] - The net profit excluding non-recurring items reached HKD 260 million, a significant year-on-year increase of 54.4%, showcasing improved profitability [2] - The growth is attributed to the optimization of product structure, with a steady increase in the proportion of high-margin high-end products, aligning with industry trends towards high-end, green, and collaborative development [2] Group 3: Strategic Development - The company employs a dual strategy of external mergers and acquisitions alongside internal development, with a recent acquisition of Merck's surface solutions business enhancing its technological and market resources [3] - The management emphasizes a "materials + innovation + full scene" strategy to drive breakthroughs in core technologies and enhance international brand integration [3] - As the only leading player in pearl pigments on the Hong Kong stock market, the company is positioned for high-quality development amid a restructuring of valuation systems and accelerated domestic substitution in the new materials industry [3]

Core Viewpoint - Fangzheng Securities initiates coverage on Global New Materials International (06616) with a "recommended" rating, projecting revenue of 910 million yuan in the first half of 2025, driven by a 34.5% increase in pearlescent pigment sales to 15,000 tons, following the acquisition of Merck's global surface solutions business in July 2025, which enhances the company's global R&D, production, and sales network [1][3]. Group 1: Financial Performance - In the first half of 2025, the company achieved operating revenue of 910 million yuan, a year-on-year increase of 17.7%, while net profit attributable to shareholders decreased by 41.9% to 62.2 million yuan [2]. - Pearlescent pigment products dominate the company's revenue, contributing 850 million yuan in the first half of 2025, a 21.4% increase year-on-year, accounting for 93% of total revenue [2]. - The sales volume of pearlescent pigment products reached 15,000 tons, reflecting a 34.5% year-on-year increase, while the gross margin slightly improved to 52.0% due to product structure enhancement and declining raw material costs [2]. Group 2: Strategic Acquisitions - The company announced plans to acquire Merck's global surface solutions business for 665 million euros (approximately 5.187 billion yuan), completing the acquisition by the end of July 2025, which is expected to accelerate internationalization and enhance global brand influence [3]. - This strategic integration will establish a global R&D and production network covering five major regions: China, Germany, South Korea, Japan, and the United States, and a sales network spanning over 150 countries and regions, strengthening the company's competitive position in the high-end pearlescent pigment sector [3]. Group 3: Capacity Expansion - The company is progressing with the second phase of its seven-color pearlescent project, which will add 30,000 tons of pearlescent materials, while the Tonglu project for 100,000 tons of surface performance materials is in the equipment installation phase, further solidifying the company's leading position in the global pearlescent materials market [4].

Core Insights - Synthetic mica is emerging as a key alternative to natural mica due to its high purity, excellent thermal resistance (over 1200℃), and strong electrical insulation properties, making it a critical non-metallic insulation material in modern industry [1][5][6] - The demand for synthetic mica is significantly increasing, particularly in the rapidly growing electric vehicle market, with projections indicating substantial market growth in the global new energy sector by 2027 [1][7] - The Chinese synthetic mica industry is expected to develop steadily towards high-end, green, and centralized high-quality growth, driven by technological innovation and application expansion [1][16] Overview of Synthetic Mica Industry - Synthetic mica, also known as artificial fluorophlogopite, is produced through high-temperature melting and crystallization processes, offering advantages such as high purity (over 99.95%), superior thermal resistance, and excellent chemical stability [2][5] - It can be categorized based on performance characteristics (e.g., golden mica, lithium mica) and product forms (e.g., single crystal sheets, powders, ceramics) [3][4] Industry Policies in China - The Chinese government has introduced multiple policies to support the synthetic mica industry, including guidelines for new material applications and plans for the development of the raw materials industry, which collectively enhance the industry's research and application capabilities [6][7] Global Development of Synthetic Mica - The global market for synthetic mica in the new energy sector reached 4.66 billion yuan in 2024, with expectations to grow to 12.37 billion yuan by 2027, reflecting a compound annual growth rate of 38.46% [7][8] - The industry is experiencing dual opportunities for technological upgrades and market expansion, particularly in high-end applications such as aerospace and electronics [7][10] Industry Chain of Synthetic Mica in China - The synthetic mica industry chain in China is characterized by clear upstream, midstream, and downstream divisions, with upstream relying on chemical raw materials and midstream focusing on the production of synthetic mica products [8][9] Demand and Application Trends - The demand for synthetic mica is rapidly increasing in the new energy sector, particularly for applications in power battery insulation and heat management, with significant adoption by leading companies like Tesla and CATL [12][13] - The pearl pigment industry, which utilizes synthetic mica as a core material, is also experiencing rapid growth, providing substantial market opportunities [14] Competitive Landscape of Synthetic Mica Industry - The Chinese synthetic mica industry features a tiered competitive structure, with leading companies dominating high-end markets while smaller firms focus on mid- to low-end segments [15][16] - Major players like Ping An Electric and Zhejiang Rongtai leverage their technological capabilities and customer relationships to secure positions in high-end applications [15] Future Development Trends - The synthetic mica industry is expected to focus on technological innovation, expanding applications in high-value sectors, and optimizing industry structure towards higher concentration and sustainability [16][17][18] - Key trends include the drive for product upgrades through technological breakthroughs, deeper penetration into high-value applications, and a shift towards green production practices [16][17][18]

Core Viewpoint - The pearl materials market is experiencing rapid growth driven by increasing demand and structural upgrades, with a projected sales revenue of 23.5 billion in 2023 and a compound annual growth rate (CAGR) of 14.0% from 2016 to 2023 [1][2] Market Growth - The global pearl materials market is expected to reach 23.5 billion in 2023, with a CAGR of 14.0% from 2016 to 2023 [1] - Emerging substrate pearl materials, such as synthetic mica, silica, and alumina, have shown significantly higher growth rates, with CAGRs of 45.7%, 33.1%, and 25.0% respectively from 2016 to 2020 [1] Application Scenarios - Pearl materials are widely used in three main sectors: industrial, cosmetics, and automotive, with the latter two primarily serving mid-to-high-end products [2] - In 2023, the market shares for cosmetic and automotive pearl materials are approximately 6.8% and 16.2%, with CAGRs of 33.9% and 15.6% from 2016 to 2023 [2] - Future growth in high-end demand is expected to maintain around 15%, driven by stable industry demand and product upgrades [2] Industry Structure - The market concentration for the top five companies (CR5) is projected to be around 19% in 2024, with a leading company achieving nearly 12% market share after acquiring Merck's pearl business and CQV [2] - Historically, the high-end market has been dominated by foreign brands, with a CR5 concentration of 52% and Merck holding a 28% market share [2] Company Overview: Global Leader in Pearl Materials - The company, established in 2011, focuses on the production and sale of pearl materials and synthetic mica, and went public in 2021 [3] - A new project to produce 30,000 tons of pearl materials is set to commence in 2024, positioning the company as the largest pearl materials factory in China [3] Strategic Expansion - The company is focusing on synthetic mica, with a project to produce 100,000 tons starting in 2025 [3] - Recent acquisitions of CQV and Merck's surface solutions business are aimed at global expansion and entering a high-growth phase [3] Technological Leadership - The company holds multiple patents in key production technologies, particularly in mica processing and hydrolysis coating, leading industry standards [3] - The shift towards synthetic mica, which offers higher purity and stable performance, is expected to increase its market share as costs decrease [3] Capacity Expansion - The company has established a total capacity of 48,000 tons for pearl pigments across two factories in Guangxi, with an additional 100,000 tons of synthetic mica capacity under construction in Hangzhou [3] High-End Market Strategy - The acquisitions of CQV and Merck are expected to create synergies in channel collaboration, cost optimization, and technology complementarity, leading to enhanced market positioning [4] - Projected net profits for 2026 and 2027 are estimated at approximately 490 million and 720 million, corresponding to price-to-earnings ratios of about 17.73 and 11.99 [4]

Investment Rating - The report assigns a "Buy" rating for the company, marking it as a first-time recommendation [11]. Core Insights - The pearl materials industry is experiencing steady growth, driven by increasing demand in high-end sectors such as automotive and cosmetics. The industry is undergoing a transformation, with domestic companies accelerating their entry into high-end markets through mergers and acquisitions and technological advancements. As a global leader, the company leverages its integrated advantages in synthetic mica, core technology research and development, and capacity expansion to ensure rapid internal growth. The acquisition of Korean CQV and Merck's surface solutions business fills gaps in high-end products and channels, achieving diversified synergy. With deepening integration and capacity release, the company is expected to solidify its global leadership position and fully benefit from the industry's high-endization [3][6][8]. Summary by Sections Pearl Materials: Demand Growth and Structural Upgrade - Pearl materials are special optical effect materials that display a pearl-like luster, produced by coating substrates with one or more layers of metal oxides. They are used in high-color-requirement fields such as automotive, cosmetics, and coatings. Compared to other pigments, pearl materials are safe, non-toxic, vibrant in color, and have strong weather resistance. The global pearl materials market is rapidly growing, with a compound annual growth rate (CAGR) of 14.0% from 2016 to 2023, reaching sales of 23.5 billion in 2023. Emerging substrate pearl materials, such as synthetic mica, silica, and alumina, have significantly outpaced overall growth, with CAGRs of 45.7%, 33.1%, and 25.0% respectively from 2016 to 2020 [6][7][28]. Application Scenarios and High-End Demand - Pearl materials have broad downstream applications categorized into industrial-grade, cosmetic-grade, and automotive-grade. The automotive and cosmetic sectors primarily focus on mid-to-high-end products. In 2023, the market shares for cosmetic and automotive pearl materials were approximately 6.8% and 16.2%, with CAGRs of 33.9% and 15.6% from 2016 to 2023, respectively. The high-end demand is expected to maintain around 15% growth, driven by stable industry demand and increased penetration from product upgrades [7][28][32]. Industry Landscape Transformation - The industry is witnessing a shift towards high-end markets, with domestic brands making significant strides. The market concentration of the top five companies (CR5) is projected to be around 19% in 2024, with the company achieving a market share close to 12% after acquiring Merck's pearl business and CQV, making it the global leader. Historically, the high-end market has been dominated by overseas brands, with a CR5 concentration of 52% [7][8][28]. Company Overview - The company, established in 2011, focuses on the production and sale of pearl materials and synthetic mica. It went public in Hong Kong in 2021. The second phase of its pearl materials project, with an annual capacity of 30,000 tons, is set to commence in 2024, making it the largest pearl materials factory in China. The company is also concentrating on synthetic mica, with a 100,000-ton project in Tonglu starting in 2025. The acquisitions of CQV and Merck's surface solutions business in 2023 and 2025, respectively, are expected to facilitate rapid global expansion and growth [8][9][28]. Capacity Expansion and Growth Acceleration - The company currently has a total capacity of 48,000 tons for pearl pigments across its two factories in Guangxi. The ongoing construction of a 100,000-ton synthetic mica facility in Hangzhou will further support revenue growth. The company aims to enhance its market share through capacity expansion and leverage the advantages of its acquisitions to penetrate high-end markets [9][28]. Strategic Synergy and Future Outlook - The company anticipates achieving a synergistic effect from its acquisitions, optimizing costs and enhancing product integration. The expected net profits for 2026 and 2027 are projected to be approximately 490 million and 720 million, respectively, corresponding to price-earnings ratios of 17.73 and 11.99 [9][28].

Investment Rating - The report assigns a "Buy" rating for the company, marking it as a first-time coverage due to its position as a global leader in pearlescent pigments and the potential underestimation of its performance [6][9]. Core Insights - The company has established itself as a leader in the global pearlescent pigment industry through strategic acquisitions, including the integration of Korean CQV and German Merck's surface solutions business (SUSONITY), which positions it well for future growth [8][11]. - The report highlights the high growth potential of the pearlescent pigment market, driven by increasing demand in high-end applications such as cosmetics and automotive coatings, with a projected CAGR of 13.99% from 2016 to 2023 [48][54]. - The company is expected to see significant revenue growth, with projected revenues of RMB 3.52 billion in 2025, reflecting a year-on-year growth rate of 114.85% [7][9]. Summary by Sections Company Overview - The company, originally founded as Guangxi Qise Pearlescent Effect Materials Co., Ltd. in 2011, has grown to become a global leader in pearlescent pigments, successfully listing on the Hong Kong Stock Exchange in 2021 and expanding its global footprint through acquisitions [17][24]. Financial Performance - The company has maintained a strong revenue growth trajectory, with a CAGR of 36.58% from 2017 to 2024, and an increase in gross margin from 43.99% in 2017 to 53.34% in 2024 [32][37]. - The report forecasts net profits of RMB 1.91 billion, RMB 5.29 billion, and RMB 10.05 billion for 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 41, 15, and 8 [9][10]. Market Dynamics - The pearlescent pigment industry is characterized by high growth potential, low price sensitivity, and strong brand loyalty, making it a unique investment opportunity [11][45]. - The report emphasizes the importance of synthetic mica as a superior alternative to natural mica, addressing supply chain challenges and enhancing product quality [67][74]. Growth Drivers - Key growth drivers include the successful integration of acquired brands, expansion of production capacity, and the increasing demand for high-end applications in cosmetics and automotive sectors [8][11][61]. - The company plans to expand its domestic production capacity to approximately 48,700 tons, which is expected to support revenue growth and improve operational efficiency [61][79]. Competitive Landscape - The competitive landscape is dominated by major players such as Merck and BASF, with the company positioned to capture market share through its strategic acquisitions and product innovations [54][56]. - The report notes that the high-end market for pearlescent pigments is characterized by significant barriers to entry, making it difficult for new brands to penetrate [54][56].

Core Viewpoint - Global New Materials International (06616) is experiencing a significant stock price increase, attributed to its plans for bond redemption and strategic acquisitions in the market [1] Group 1: Stock Performance - The stock of Global New Materials International rose nearly 9%, with a current increase of 8.49%, trading at HKD 6.52 and a transaction volume of HKD 181 million [1] Group 2: Corporate Actions - The company plans to redeem USD 40 million of convertible bonds that are due on November 8 [1] - From July to October, the company purchased a total of 1.1218 million shares of its non-wholly owned subsidiary CQV, increasing its total holdings to 5.5118 million shares, representing approximately 50.75% of CQV's total issued shares [1] Group 3: Production Capacity and Future Plans - According to Guojin Securities, the domestic operating entity of Global New Materials has a current production capacity of 33,000 tons for pearlescent pigments, with a long-term plan to increase this capacity to 48,000 tons [1] - The CQV facility in South Korea has a combined production capacity of 2,600 tons [1] - The Tonglu factory's synthetic mica production capacity of 100,000 tons is expected to be completed and operational in the second half of 2025 [1] - The company anticipates that the expansion in Guangxi and the acquisition of CQV/Merck will provide channels for capacity digestion in synthetic mica, while the current domestic synthetic mica base cost remains higher than that of natural mica, indicating potential for cost reduction and efficiency improvements in the future [1]

Core Viewpoint - Global New Materials International (06616) is experiencing a significant stock price increase, attributed to its plans for bond redemption and strategic share acquisitions in its subsidiary CQV [1] Company Developments - The company plans to redeem $40 million convertible bonds due on November 8 [1] - From July to October, the company purchased a total of 1.1218 million shares of its non-wholly owned subsidiary CQV, increasing its total holdings to 5.5118 million shares, representing approximately 50.75% of CQV's total issued shares [1] Industry Insights - According to Guojin Securities, the domestic operational entity of Global New Materials has a current production capacity of 33,000 tons for pearlescent pigments, with a long-term plan to increase this capacity to 48,000 tons [1] - The CQV facility in South Korea has a combined production capacity of 2,600 tons [1] - The Tonglu factory's synthetic mica production capacity of 100,000 tons is expected to be completed and operational by the second half of 2025, with expectations for expansion in Guangxi and acquisitions of CQV/Merck to provide channels for capacity digestion [1] - Current domestic synthetic mica production costs remain higher than those of natural mica, with expectations for cost reduction following capacity expansion [1]

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]