The popularity of cultivating diamonds has risen again, the market is in short supply, and the annual performance of four stocks has increased significantly.
The diamond cultivation concept index rose 5.06%
On February 22, the cultivated diamond concept index rose by 5.06%, ranking first in the growth list of the concept index. Among concept stocks, Mclon Jewellery Co.Ltd(300945) rose 14.26%, and Sf Diamond Co.Ltd(300179) , North Industries Group Red Arrow Co.Ltd(000519) , Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) rose more than 5%. Only Shanghai Yuyuan Tourist Mart (Group) Co.Ltd(600655) closed down slightly, down 0.74%.
The concept of cultivating diamonds has experienced a round of deep correction before. According to the statistics of securities times · data treasure, from the end of November 2021 to the eve of the Spring Festival of the year of the tiger, the concept index fell all the way from the range high point to the range low point, with a cumulative decline of 25.82%. After the festival, the index bottomed out and rebounded, with a cumulative increase of 19.4%.
The continuous rise of diamond cultivation market is closely related to the high outlook of downstream demand. As the world diamond polishing and processing center, India imported 153 million US dollars of cultivated diamond blanks in January this year, a year-on-year increase of 77.86%; The export volume of bare drilling was 122 million US dollars, a year-on-year increase of 69.09%; The import penetration rate was 11.21%, with a year-on-year increase of 4.79 percentage points; The export penetration rate was 5.62%, with a year-on-year increase of 1.77 percentage points. The substantial growth of diamond import and export data reflects the strong demand in the downstream.
benefiting from strong demand, diamond cultivation is expected to continue to increase
Cultivated diamond, i.e. artificial diamond, is a diamond synthesized by artificially simulating the growth environment of natural diamond. It is mainly synthesized by HTHP method (high temperature and high pressure) and CVD method (chemical vapor precipitation method). It belongs to superhard material. China is a big country in the global superhard material market, with superhard materials accounting for more than 95%.
At present, the global diamond industry chain is mainly dominated by China, India and the United States. in 2020, China produced more than 40% of the world’s cultivated diamonds, of which 70% – 80% eventually went to the US market; India has polished 90% of the world’s diamonds; The United States consumes 80% of the world’s cultivated diamonds, of which 30% – 40% can be traced back to China.
In January, De Beers, the world’s largest diamond mining supplier, raised the price of raw diamonds by about 8% at the first fair in 2022. This is the fifth price increase by De Beers since December last year. Analysts said that the rise of international diamond prices several times has made Chinese diamond enterprises have greater expectations for the rise of diamond prices in the future, and cultivating diamonds may become a new choice.
Guotai Junan Securities Co.Ltd(601211) believes that there is strong demand for cultivating overseas downstream diamonds, which continues to be in short supply, and there is great room for Chinese consumers to reach and improve, and the industry shows a long-term trend of improvement. Based on the three driving factors, the industry is expected to continue high growth. Caitong Securities Co.Ltd(601108) it is expected that the United States will remain the main consumer market for cultivating diamonds for a long time, and the improvement of its penetration rate will be the main increment of consumption in the future. As the largest diamond rough supply market in the world, China will significantly benefit from the rise of global C-end.
all kinds of funds increased positions by 5 shares and 4 shares, with high annual performance growth
according to the statistics of data treasure, there are 9 A-share diamond cultivation concepts. Among them, four leading enterprises North Industries Group Red Arrow Co.Ltd(000519) , Henan Huanghe Whirlwind Co.Ltd(600172) , Henan Liliang Diamond Co.Ltd(301071) and Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) account for about 80% of the total market. at present, the annual performance of the four shares has been predicted. Based on the median value of the pre increase range, Henan Liliang Diamond Co.Ltd(301071) , Henan Huanghe Whirlwind Co.Ltd(600172) net profit is expected to double, North Industries Group Red Arrow Co.Ltd(000519) increased by 71.19% year-on-year, and Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) decreased slightly by 1.12% year-on-year. In addition, the Sinomach Precision Industry Co.Ltd(002046) net profit growth of HPHT / CVD is also expected to exceed 100%.
Years later, the cultivated diamond index bottomed out and rebounded, with a cumulative increase of 19.4%. Over the same period, 7 shares rose by more than 15%, while Mclon Jewellery Co.Ltd(300945) , Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) , Henan Huanghe Whirlwind Co.Ltd(600172) 3 shares rose by more than 25%, and the conceptual heat rebounded as a whole. In terms of agency rating, Henan Liliang Diamond Co.Ltd(301071) and Shanghai Yuyuan Tourist Mart (Group) Co.Ltd(600655) were rated by about 15 agencies, with high market attention; North Industries Group Red Arrow Co.Ltd(000519) , Henan Huanghe Whirlwind Co.Ltd(600172) , Sinomach Precision Industry Co.Ltd(002046) also attracted the attention of about 5 institutions.
In terms of valuation, the overall valuation of the concept of cultivating diamonds on February 22 was 21.75 times. Among concept stocks, only Shanghai Yuyuan Tourist Mart (Group) Co.Ltd(600655) the latest rolling P / E ratio is lower than this value, which is 10.87 times. Due to the continuous correction in the early stage of the sector, the latest price of concept stocks generally has a large gap compared with the target price of institutions, and the rising space of six stocks is more than 20%: Henan Huanghe Whirlwind Co.Ltd(600172) and North Industries Group Red Arrow Co.Ltd(000519) share prices have a rising space of 98.93% and 50.82% respectively, Sinomach Precision Industry Co.Ltd(002046) also has a rising potential of 32.37%.
In terms of funds, leveraged funds increased positions of Mclon Jewellery Co.Ltd(300945) , North Industries Group Red Arrow Co.Ltd(000519) , Henan Huanghe Whirlwind Co.Ltd(600172) , Beijing Worldia Diamond Tools Co.Ltd(688028) 4 shares in recent 10 days, and the growth rate of financing balance was 27.91%, 9.19%, 4.54% and 0.31% respectively. Another Shanghai Yuyuan Tourist Mart (Group) Co.Ltd(600655) was increased by 14.94% from the north.
