Guotai Haitong: Maintain "Buy" rating on GLOBAL NEW MAT (06616) with a target price of 5.27 Hong Kong dollars.

Guotai Haitong released a research report stating that it maintains a "buy" rating for GLOBAL NEW MAT (06616), and projects a net profit attributable to shareholders of 3.04, 3.76, and 4.88 billion yuan for the years 2025-2027, with a target price of HK$5.27. The company's Phase 2 pearl materials factory in Qishe has gradually started production with an annual capacity of 30,000 tons, while the infrastructure for the 100,000-ton surface performance materials project in Hangzhou Tonglu is nearing completion and entering the equipment installation phase. These large-scale production capacities will further strengthen the company's leading position in global production capacity. The report states that between July 2025 and October 2025, the company collectively purchased 1.1218 million shares of non-wholly-owned subsidiary CQV. Before the increase in shareholding, the company held a total of 4.39 million shares of CQV, accounting for about 42.45% of the total number of CQV shares issued at that time. After the increase in shareholding, the company held a total of 5.5118 million shares of CQV, accounting for about 50.75% of the total number of CQV shares issued. Through this increase in shareholding, the company aims to strengthen its control over overseas core assets, enhance the synergies of its global business, and strengthen governance stability. As an important part of the group's merger and acquisition integration strategy, CQV has a mature technical system, high-quality customer resources, and stable profit capabilities, serving as an important support for the group's overseas expansion strategy of "materials + innovation + all scenarios." 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 its main business's geographical coverage and sales channels, marking an important step in the group's global layout. The highly complementary business integration will accelerate the group's penetration of key high-quality markets globally, especially in the automotive and cosmetics industries. Through integrating global business solutions in high-performance materials, cosmetics, and industrial applications, the group will enrich its product portfolio and enhance the competitiveness of its main business.