National Securities International has issued a research report maintaining a "buy" rating on GLOBAL NEW MAT (06616), with net profit forecasts of RMB270 million, RMB510 million, and RMB650 million for fiscal years 2025, 2026, and 2027 respectively (compared to previous forecasts of RMB380 million, RMB490 million, and RMB640 million as of April 16, 2025). This corresponds to earnings per share of HK$0.19, HK$0.35, and HK$0.45 (versus previous forecasts of HK$0.26, HK$0.33, and HK$0.43 as of April 16, 2025).

The target price has been slightly raised from HK$5.4 to HK$5.5 (based on DCF and comparable company valuation methods), representing a 17% upside potential from the current stock price.

According to the report, the company achieved operating revenue of RMB910 million in the first half of 2025 (all figures in RMB unless otherwise specified), representing a year-over-year increase of 17.7%. Operating profit reached RMB292 million, up 29.1% year-over-year, while net profit attributable to shareholders was RMB62 million, down 41.9% year-over-year.

The Merck Susonity business is expected to be consolidated in the second half of 2025, prompting the firm to adjust its earnings forecasts. The research house believes that while the acquisition will increase financial expenses, the core businesses of pearlescent pigments and synthetic mica maintain strong cash flows and are expected to continue growing.