To The Moon

GLOBAL NEW MAT (06616) surged more than 3%, reaching HK$6.87 by the time of writing, with a trading volume of HK$14.88 million. The company announced plans to redeem US$40 million in convertible bonds due on November 8. Between July and October, it acquired 1.12 million shares of its non-wholly owned subsidiary CQV, increasing its total stake to 5.51 million shares, or approximately 50.75% of CQV's issued shares. Analysts at Huayuan Securities noted that the pearlescent pigment industry is undervalued, characterized by high growth potential, low price sensitivity, and strong brand moats—factors that naturally support premium valuations. The global pearlescent pigment market grew at a CAGR of 13.99% from 2016 to 2023, with faster demand growth in high-margin, premium segments like cosmetics and automotive. GLOBAL NEW MAT's acquisitions of South Korea's CQV and Merck's surface solutions business have positioned it as an industry leader in high-end markets. The company plans to expand its domestic pearlescent pigment production capacity to 48,700 tons, which is expected to accelerate the absorption of acquisition-driven demand benefits while improving cost efficiency through economies of scale.