The Zhitong Finance App learned that CaiTong Securities released a research report stating that it gave Global New Materials International (06616) an “increase in holdings” rating for the first time. It is expected to achieve operating income of 908/1,195/1,515 million yuan and net profit of 238/33/431 million yuan in 2022-24. The company has industry-leading technology research and development capabilities, built strong technical barriers on high-quality synthetic mica through an intensive patent layout, and has the ability to mass-produce on a large scale and expand production capacity continuously.

According to the report, synthetic mica-based pearlescent pigments have better color expressiveness, have advantages such as non-toxicity, non-radioactivity, and high temperature resistance. They are widely used in high-end leather, cosmetics, automotive coatings and other industries, and are an upgraded development direction for pearlescent pigments. As a representative of the company's high-end products, the synthetic mica series products are more profitable and the growth trend is remarkable. The sales revenue of synthetic mica powder exceeded 8 million yuan in 2022, with a year-on-year growth rate of 774%. The sales revenue of pearlescent pigments based on synthetic mica was 149.5 million yuan, with a year-on-year growth rate of 32.1%.

The bank said that the company plans to quickly open up the international automotive paint market through overseas mergers and acquisitions to establish effective sales channels for high-end products. In addition, the second phase of the production plant is mainly used to produce high-end pearlescent pigments. Commercial production is expected to be achieved by the end of 2022, releasing 6,000 tons of production capacity and supplying 30,000 tons of production capacity. The Luzhai synthetic mica plant under construction is mainly used for the production of synthetic mica substrates, and will provide 30,000 tons of additional production capacity in the future. In addition, Global New Materials is also focusing on expanding the application of synthetic mica in the cosmetic field to accelerate the replacement of traditional cosmetic functional fillers.