Global New Material International Holdings (SEHK:6616) - Share price, News & Analysis

Q: What is the Fair Price of 6616 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

6616 (HK$4.01) is trading above our estimate of [[fair value]] (HK$0.64)

6616 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	1/6
Financial Health	5/6
Dividends	0/6

6616 Stock Overview

Rewards

Revenue grew by 17.7% over the past year

Risk Analysis

6616 passed our risk checks.

Global New Material International Holdings Competitors

China Boton Group

SEHK:3318

HK$3.6b

Tiande Chemical Holdings

SEHK:609

HK$2.2b

Green Future Food Hydrocolloid Marine Science

SEHK:1084

HK$2.6b

Huabao International Holdings

SEHK:336

HK$13.3b

Price History & Performance

Summary of all time highs, changes and price drops for Global New Material International Holdings
Historical stock prices
Current Share Price	HK$4.01
52 Week High	HK$11.50
52 Week Low	HK$3.63
Beta	0
1 Month Change	-0.25%
3 Month Change	4.97%
1 Year Change	-33.94%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	8.38%

Recent News & Updates

Jul 27

Global New Material International Holdings (HKG:6616) Will Be Hoping To Turn Its Returns On Capital Around

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Amongst other things...

Shareholder Returns

	6616	HK Chemicals	HK Market
7D	-1.0%	1.9%	1.5%
1Y	-33.9%	-35.0%	-20.8%

Return vs Industry: 6616 exceeded the Hong Kong Chemicals industry which returned -35% over the past year.

Return vs Market: 6616 underperformed the Hong Kong Market which returned -20.8% over the past year.

Price Volatility

Is 6616's price volatile compared to industry and market?
6616 volatility
6616 Average Weekly Movement	6.7%
Chemicals Industry Average Movement	6.5%
Market Average Movement	6.5%
10% most volatile stocks in HK Market	12.8%
10% least volatile stocks in HK Market	3.2%

Stable Share Price: 6616 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 6616's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2011	503	Ertian Su	https://www.chesir.net

Global New Material International Holdings Limited, an investment holding company, engages in the production and sale of pearlescent pigment products in the People’s Republic of China, Asia, Europe, Africa, and South America. The company offers natural mica-based, synthetic mica-based, glass flake-based, and silicon oxide-based pearlescent pigment products. It also produces and sells synthetic mica powder of various granule sizes as raw materials to produce functional fillers, insulating materials, refractory materials, and nickel-hydrogen batteries.

Global New Material International Holdings Fundamentals Summary

How do Global New Material International Holdings's earnings and revenue compare to its market cap?
6616 fundamental statistics
Market Cap	HK$4.78b
Earnings (TTM)	HK$187.41m
Revenue (TTM)	HK$774.65m

25.5x

P/E Ratio

6.2x

P/S Ratio

Is 6616 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6616 income statement (TTM)
Revenue	CN¥669.73m
Cost of Revenue	CN¥329.66m
Gross Profit	CN¥340.07m
Other Expenses	CN¥178.04m
Earnings	CN¥162.03m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 27, 2022

Earnings per share (EPS)	0.14
Gross Margin	50.78%
Net Profit Margin	24.19%
Debt/Equity Ratio	6.7%

How did 6616 perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

18%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 6616 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6616?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 6616. This is calculated by dividing 6616's market cap by their current preferred multiple.
What is 6616's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥4.13b

6616 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.2x
Enterprise Value/EBITDA	12.5x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 6616's PE Ratio compare to its peers?

6616 PE Ratio vs Peers

The above table shows the PE ratio for 6616 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	16.1x
3318 China Boton Group	17.1x	n/a	HK$3.6b
609 Tiande Chemical Holdings	5x	n/a	HK$2.2b
1084 Green Future Food Hydrocolloid Marine Science	25.4x	n/a	HK$2.6b
336 Huabao International Holdings	17x	n/a	HK$13.3b
6616 Global New Material International Holdings	25.5x	n/a	HK$4.8b

Price-To-Earnings vs Peers: 6616 is expensive based on its Price-To-Earnings Ratio (25.5x) compared to the peer average (16.1x).

Price to Earnings Ratio vs Industry

How does 6616's PE Ratio compare vs other companies in the HK Chemicals Industry?

Price-To-Earnings vs Industry: 6616 is expensive based on its Price-To-Earnings Ratio (25.5x) compared to the Hong Kong Chemicals industry average (5.7x)

Price to Earnings Ratio vs Fair Ratio

What is 6616's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6616 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	25.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 6616's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 6616 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6616 (HK$4.01) is trading above our estimate of fair value (HK$0.64)

Significantly Below Fair Value: 6616 is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Global New Material International Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

28.4%

Forecasted Materials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Global New Material International Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine Global New Material International Holdings's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
Global New Material International Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Global New Material International Holdings performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

9.4%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: 6616 has high quality earnings.

Growing Profit Margin: 6616's current net profit margins (24.2%) are lower than last year (26%).

Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 6616's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare 6616's past year earnings growth to its 5-year average.

Earnings vs Industry: 6616 earnings growth over the past year (9.4%) underperformed the Chemicals industry 50.4%.

Return on Equity

High ROE: 6616's Return on Equity (7.2%) is considered low.

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Financial Health

How is Global New Material International Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6616's short term assets (CN¥2.0B) exceed its short term liabilities (CN¥255.0M).

Long Term Liabilities: 6616's short term assets (CN¥2.0B) exceed its long term liabilities (CN¥6.7M).

Debt to Equity History and Analysis

Debt Level: 6616 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if 6616's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 6616's debt is well covered by operating cash flow (93.3%).

Interest Coverage: 6616's interest payments on its debt are well covered by EBIT (24.4x coverage).

Balance Sheet

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Dividend

What is Global New Material International Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.84%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6616's dividend (0.85%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.84%).

High Dividend: 6616's dividend (0.85%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.27%).

Stability and Growth of Payments

Stable Dividend: 6616 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 6616 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: 6616 is not paying a notable dividend for the Hong Kong market.

Cash Payout to Shareholders

Cash Flow Coverage: 6616 is not paying a notable dividend for the Hong Kong market.

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Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average board tenure

CEO

Ertian Su (55 yo)

no data

Tenure

CN¥826,000

Compensation

Mr. Ertian Su is Chairman and Chief Executive Officer of Global New Material International Holdings Limited. Mr. Su is also Founder and an Executive Director at Global New Material International Holdings L...

CEO Compensation Analysis

Compensation vs Market: Ertian's total compensation ($USD121.81K) is below average for companies of similar size in the Hong Kong market ($USD544.06K).

Compensation vs Earnings: Ertian's compensation has been consistent with company performance over the past year.

Board Members

Experienced Board: 6616's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: 6616 insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/18 00:00
End of Day Share Price	2022/08/18 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31