Geographical conflicts may drive the price rise of natural diamonds, which is expected to provide effective support for the cultivation of diamond prices. 1) The rise in the price of natural diamonds is expected to provide support and support for the cultivation of diamond prices. The latest US sanctions list against Russia includes Alrosa, the world’s largest diamond producer, and Ivanov, its CEO. Subsequently, EU countries may also impose sanctions on Alrosa. We believe that sanctions on Russian diamond exports may have a significant impact on the overall supply of the global diamond industry, and the reduction of Russian diamond exports may lead to a further rise in global natural diamond prices. 2) Cultivating diamond “leaders” and raising prices are expected to continue to boost the prosperity of the industry. Benefiting from the high prosperity of the industry, China’s “leading” Diamond enterprises raised the price of all products by 10% in January after raising the price of medium and low-end products by 10% in November last year. The downstream demand for cultivated diamonds is growing rapidly, and the downstream supply is difficult to increase rapidly due to the tight supply of equipment. Therefore, the price is expected to rise steadily.
Henan Liliang Diamond Co.Ltd(301071) released the 2021 annual report, and the three main industries had high boom growth. The company released its 2021 annual report on February 27. During the reporting period, the company achieved a total operating revenue of 498 million yuan, a year-on-year increase of + 103.50%; The net profit attributable to the parent company was 240 million yuan, a year-on-year increase of + 228.17%. At the same time, the announcement on the 2021 high transfer plan and profit distribution plan was issued. It is proposed to distribute cash dividends of 10 yuan per 10 shares to all shareholders, and increase 10 shares per 10 shares to all shareholders with capital reserve. 1) The three main businesses achieved high economic growth, and the revenue of diamond cultivation business exceeded 4 times year-on-year; 2) Profitability rose sharply and continued to be optimistic about the prospect of raising the price of cultivated diamond + single crystal; 3) Sales / management expenses were well controlled, and R & D expenses increased year-on-year; 4) The production capacity of raised investment has been steadily implemented, and new press suppliers have been developed.
The State Food and Drug Administration issued the measures for the monitoring and management of adverse reactions of cosmetics. On February 21, the State Food and Drug Administration issued the measures for the monitoring and management of adverse reactions of cosmetics, which will be officially implemented from October 1, 2022. This is the first regulatory document specially formulated for the monitoring and management of adverse reactions of cosmetics in China. The management measures clarify the monitoring responsibilities of the production end, brand end, retail end, regulatory authorities and relevant medical institutions on adverse reactions of cosmetics. Consumers also get complaints in various ways, and shorten the time to deal with adverse reactions of cosmetics. The promulgation and implementation of the monitoring measures will further standardize the beauty industry, reduce the occurrence of adverse reactions of cosmetics, improve the quality of cosmetics, and reshape the image of domestic beauty products.
Investment suggestion: the mood of cultivating diamond sector is gradually warming up, and “leading” enterprises have layout opportunities. Continue to recommend Henan Liliang Diamond Co.Ltd(301071) , North Industries Group Red Arrow Co.Ltd(000519) , and pay attention to Henan Huanghe Whirlwind Co.Ltd(600172) , Sf Diamond Co.Ltd(300179) , Beijing Worldia Diamond Tools Co.Ltd(688028) and Sinomach Precision Industry Co.Ltd(002046) . Optimistic about the prosperity of gold and jewelry sector, it is recommended to pay attention to Chow Tai Seng Jewellery Company Limited(002867) , Chow Tai Fook, Guangdong Chj Industry Co.Ltd(002345) and Mclon Jewellery Co.Ltd(300945) . The mother infant sector benefits from the policy catalysis, and it is suggested to pay attention to Kidswant Children Products Co.Ltd(301078) , Shanghai Aiyingshi Co.Ltd(603214) . We are optimistic about the rise of the “leader” of domestic medical beauty and beauty makeup, and recommend Imeik Technology Development Co.Ltd(300896) , Yunnan Botanee Bio-Technology Group Co.Ltd(300957) , Bloomage Biotechnology Corporation Limited(688363) , Proya Cosmetics Co.Ltd(603605) , and we suggest paying attention to Shanghai Jahwa United Co.Ltd(600315) , Lushang Health Industry Development Co.Ltd(600223) , Syoung Group Co.Ltd(300740) , Guangdong Marubi Biotechnology Co.Ltd(603983) ; The implementation of monitoring management measures is beneficial to the upstream “leaders” Nanjing Cosmos Chemical Co.Ltd(300856) , Jahen Household Products Co.Ltd(300955) .
Risk warning: the promotion of new products is not as expected, the production quality of cosmetics is at risk, and the overall fluctuation risk of the industry; The demand for cultivating diamonds is less than expected, the price of raw materials has risen sharply, and the competition pattern of the industry has deteriorated.
