Global New Material (6616.HK) Q4 2024 Earnings Report

Global New Material International Holdings Limited posted a solid QQ4 2024 performance, highlighted by a meaningful YoY revenue increase and resilient margins alongside a capital expenditure program designed to expand pigment capacity. Revenue reached 437.07 million CNY, up 45.8% year-over-year, with gross profit of 245.76 million CNY and a gross margin of 56.22%. Operating income was 149.09 million CNY (operating margin of 34.11%), and net income stood at 67.56 million CNY (net margin 15.46%), producing an EPS of 0.0545 CNY. EBITDA was 163.92 million CNY. The company generated operating cash flow of 38.63 million CNY but incurred substantial capital expenditure of 329.55 million CNY, resulting in negative free cash flow of 290.92 million CNY for QQ4 2024. On the balance sheet, the group maintained a strong liquidity profile with cash and cash equivalents of 3.411 billion CNY and a net debt position of -977.1 million CNY, underscoring a robust net cash cushion to fund ongoing capacity expansion and potential strategic moves. The working capital cycle remained elongated (CCC around 221 days), reflecting inventory buildup inherent to scale-up in high-value pigment products. Value metrics show a P/E of about 19.0x and a P/B of roughly 1.52x, suggesting the market prices in a reasonable growth and profitability trajectory, albeit with near-term FCF pressure tied to capex cadence.