Cathay Securities and Haitong Securities: Maintain GLOBAL NEW MAT's "Buy" rating with a target price of HKD 5.27

Zhitong
2025.10.28 07:33
portai
I'm PortAI, I can summarize articles.

CITIC Securities maintains a "Buy" rating on GLOBAL NEW MAT with a target price of HKD 5.27. The company's Seven Color Pearl Phase II factory is gradually starting production, and the infrastructure for the Hangzhou Tonglu project is nearing completion. It is expected that the net profit attributable to the parent company will be RMB 304 million, 376 million, and 488 million for the years 2025-2027. The company aims to enhance its control over overseas core assets by increasing its stake in CQV to 50.75%, promoting global business synergy, particularly in market penetration in the automotive and cosmetics sectors

According to the Zhitong Finance APP, Guotai Junan released a research report stating that it maintains a "Buy" rating for GLOBAL NEW MAT (06616), projecting the company's net profit attributable to shareholders for 2025-2027 to be 304 million, 376 million, and 488 million yuan, respectively, with a target price of HKD 5.27. The company's Phase II pearl material factory with an annual production capacity of 30,000 tons has gradually begun production; the infrastructure for the Hangzhou Tonglu project, which produces 100,000 tons of surface performance materials annually, is nearing completion and has entered the equipment installation phase. Such large-scale capacity will further consolidate the company's leadership position in global production capacity.

The report states that between July 2025 and October 2025, the company purchased a total of 1,121,800 shares of its non-wholly-owned subsidiary CQV. Before the increase in holdings, the company held a total of 4,390,000 shares of CQV, accounting for approximately 42.45% of the total issued shares of CQV at that time. After the increase in holdings, the company holds a total of 5,511,800 shares of CQV, accounting for approximately 50.75% of the total issued shares of CQV. Through this increase in holdings, the company aims to strengthen its control over overseas core assets, enhance the synergy of its global business, and reinforce governance stability. As an important part of the group's merger and integration strategy, CQV possesses a mature technology system, high-quality customer resources, and stable profitability, serving as a crucial support for the group's "Materials + Innovation + Full Scenario" overseas expansion strategy.

The company's board of directors announced that the transaction was finalized on July 31, 2025. This strategic acquisition of global business allows the group to further expand the geographical coverage and sales channels of its main business, marking an important step in the group's global layout. The highly complementary business integration will accelerate the group's penetration into key high-quality global markets, particularly in the automotive and cosmetics sectors. By integrating global business expertise in high-performance materials, cosmetics, and industrial applications, the group can further enrich its product portfolio and enhance the competitiveness of its main business

Source: Zhitong The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.