\u3000\u30 Shenzhen Fountain Corporation(000005) 19 North Industries Group Red Arrow Co.Ltd(000519) )
Core view
In February 2022, India’s imports of cultivated diamond raw stones increased by 84%; The composite growth rate from 2019 to 2021 was 107%. According to the statistics of GJEPC (Indian crystal and Jewelry Import and export Research Association), the import volume of cultivated diamond raw stones in India in February 2022 was US $155 million (RMB 1.1 billion), a year-on-year increase of 84%. From 2019 to 2021, the annual import volume of India’s cultivated diamond raw stones was US $263 / 4.40/1.130 billion, and the CAGR was 107%. India, the “diamond processing Empire”, accounts for more than 90% of the global diamond intermediate processing links. The high growth data confirms the high demand boom. In order to cultivate an important source of raw diamond supply in China, the orders and performance of relevant enterprises will be in large quantities.
Henan Liliang Diamond Co.Ltd(301071) first quarter results increased by 128152%, fostering the overall improvement of the drilling industry
Henan Liliang Diamond Co.Ltd(301071) released the performance forecast for the first quarter, and it is expected to realize the net profit attributable to the parent company of 93-103 million, with a year-on-year increase of 128% – 152% Henan Liliang Diamond Co.Ltd(301071) high performance growth highlights the cultivation of strong downstream demand in the drilling industry and the continuous enhancement of profitability Henan Liliang Diamond Co.Ltd(301071) as a company with the same business as North Industries Group Red Arrow Co.Ltd(000519) its performance confirms the overall good trend of the industry to a certain extent.
Henan Liliang Diamond Co.Ltd(301071) 4 billion production expansion, reflecting the strong demand for cultivating diamonds downstream and the high prospect of the industry
Henan Liliang Diamond Co.Ltd(301071) issued the feasibility analysis report on the use of funds raised by issuing A-Shares to specific objects in 2022 on March 25. It is proposed to raise 4 billion yuan for the construction of diamond cultivation and industrial diamond production expansion, of which the total equipment purchase cost is 3.011 billion yuan for the purchase of press production expansion, reflecting the strong downstream demand and the high prospect of the industry.
“982” project of Henan Province: North Industries Group Red Arrow Co.Ltd(000519) (Central South diamond) expands the production of diamonds and cultivates diamonds, with an investment of 1.15 billion yuan. According to the implementation plan of “982” project of mending the shortcomings in 2022 of Henan Province, in terms of diamond Cultivation: Henan provincial government has six pure diamond cultivation production projects, with a total investment of about 6.92 billion yuan. Including: the high-grade industrial diamond and gem grade diamond series construction project of Zhongnan diamond Co., Ltd. ( North Industries Group Red Arrow Co.Ltd(000519) subsidiary), with a total investment of 1.15 billion yuan, of which 500 million yuan is planned to be completed in 2022; It is expected that the production capacity of North Industries Group Red Arrow Co.Ltd(000519) cultivated diamonds will be further improved.
Central enterprises strive to make a good start in the first quarter. It is expected that the trend of the company in the first quarter will be better, and the annual performance is expected to double. Central enterprises strive to make a good start in the first quarter. The State Finance Commission stressed “earnestly invigorating the economy in the first quarter”, and central enterprises stressed “a good start” in the first quarter. Aviation Industry: strive for a “good start” in the first quarter. Ordnance Group: before Inner Mongolia First Machinery Group Corporation Co.Ltd(600967) group “ensure that all indicators achieve a good start in the first quarter” North Industries Group Red Arrow Co.Ltd(000519) as the listed company with the largest market value of Ordnance Group at present, we expect the performance trend to be better in the first quarter of 2022, and the annual net profit is expected to more than double in 2022.
Investment suggestion: cultivate diamond + industrial diamond leader, intelligent ammunition leader of Ordnance Group, dual drive of military and civil products North Industries Group Red Arrow Co.Ltd(000519) for global cultivation of diamond raw stone + industrial diamond leader, intelligent ammunition leader of Ordnance Group and dual drive of military and civil products in the future. It is estimated that the net profit from 2021 to 2023 will be RMB 480 / 10.4 / 1.36 billion, with a year-on-year increase of 76% / 115% / 30%, a compound growth rate of 70%, and the PE will be 57 / 27 / 20 times, maintaining the “buy” rating.
Risk tip: the competition pattern and profit changes of diamond cultivation, new technology iteration, and military products are not as expected.
