Market Review
In the current period (from April 4 to April 8), the CSI 300 fell 1.1% and the machinery sector fell 1.9%, ranking 18 among the 28 Shenwan industries. In terms of subdivided industries, construction machinery increased the most, up 8.8%; Photovoltaic equipment fell the most, down 7.0%.
This week’s view
The good news of cultivating the diamond industry continues, and the prosperity continues to rise.
Recently, the targets of the diamond industry have been intensively disclosed: 1) Henan Huanghe Whirlwind Co.Ltd(600172) : the company is expected to turn losses into profits in 2021, with an estimated profit of 41 million yuan. 2) North Industries Group Red Arrow Co.Ltd(000519) : in 2021, the company realized a net profit attributable to the parent company of 472 million yuan, with a year-on-year increase of 71.93%. In the first quarter, it is expected to realize a net profit attributable to the parent company of 240280 million yuan, with a year-on-year increase of 148.14% – 189.50%. 3) Henan Liliang Diamond Co.Ltd(301071) : in 2021, the company realized a net profit attributable to the parent company of 240 million yuan, with a year-on-year increase of 228.17%. In the first quarter, it is expected to realize a net profit attributable to the parent company of 93-103 million yuan, with a year-on-year increase of 127.89% – 152.40%. It can be seen that the performance of several enterprises has increased significantly, confirming the high prosperity of the whole industry. In addition, from the perspective of downstream retail brands, at present, in addition to emerging diamond brands such as xiaobaiguang and kailixi, traditional jewelry brands such as Shanghai Yuyuan Tourist Mart (Group) Co.Ltd(600655) , Zhou Shengsheng and others have begun to layout and cultivate diamond business. The addition of traditional brands will be more conducive to the rapid promotion of diamond cultivation. The total amount of non-public issuance of shares was RMB 17.2 billion, which was lower than the announcement of July, and the total amount of non-public issuance of shares was RMB 1.4 billion, which was lower than the announcement of July and July, respectively. Among the raised funds, 800 million yuan is intended to cultivate diamond industrialization projects, and 250 million yuan is intended to supplement working capital and repay bank loans. “Huanghe Changsheng holding”, a wholly-owned subsidiary of Huanghe industry, the controlling shareholder of the company, will fully subscribe. According to the upper limit of this fixed increase, the shareholding proportion of Mr. Qiao Qiusheng, the actual controller of the company, will rise from 20.36% before the fixed increase to 27.73%, showing the actual controller’s confidence in future development. By virtue of technical advantages, leading manufacturers actively expand production capacity, which is expected to continue to improve market share and further open the space for cultivating the diamond industry.
Investment suggestions:
The diamond industry is still in short supply. We continue to recommend Henan Huanghe Whirlwind Co.Ltd(600172) , North Industries Group Red Arrow Co.Ltd(000519) , Henan Liliang Diamond Co.Ltd(301071) , Sf Diamond Co.Ltd(300179) , Beijing Worldia Diamond Tools Co.Ltd(688028) , Sinomach Precision Industry Co.Ltd(002046) !
Risk tips
Macroeconomic fluctuations, external demand fluctuations.
