Core view
India import and export data tracking:
Cultivating diamonds: in March 2022, the import of rough diamonds was US $203 million, a year-on-year increase of 157.10%, and the export of bare diamonds was US $137 million, a year-on-year increase of 59.45%
Natural diamonds: in March 2022, the import of rough diamonds was US $2.037 billion, a year-on-year increase of 45.22%, and the export of bare diamonds was US $2.199 billion, a year-on-year increase of 3.08%.
Permeability of cultivated drilling: in March 2022, the permeability at the inlet end was 9.06%, with a year-on-year increase of + 3.73 PCT; The permeability at the outlet end was 5.87%, with a year-on-year increase of + 2.02pct.
Industry news: the downstream demand of diamond industry is hot, and the prices of many products continue to rise
Cultivating diamonds: since February, Hubei Zhongjing diamond Co., Ltd. has raised the product price for three consecutive times, and the price of cultivated diamonds per carat is more than 30% higher than that at the end of last year.
Industrial diamond: on April 12, Bozhou Superhard Materials Association issued the notice of diamond price adjustment: from May 1, the price of RVD diamond mixture will be adjusted to 0.20 yuan / carat (including tax).
Investment suggestion: at present, the penetration rate of cultivated diamonds in the world is only 4%. After the price difference between cultivated diamonds and natural diamonds is expanded, the cost performance advantage is highlighted, and the downstream demand is expected to be further improved. The cultivation of diamond leaders is also the leader in China’s industrial diamond field. Since 2021, the market has been in short supply, resulting in the rise of industrial diamond price and significant improvement of profitability. With the strong support of Henan provincial government, leading enterprises actively expand production capacity and enjoy the dividends of the rising period of the industry. It is suggested to pay attention to two investment routes:
1) production side: the downstream demand for diamond Cultivation & industrial diamond is hot. It is suggested to pay attention to the main production enterprises Henan Liliang Diamond Co.Ltd(301071) ( Henan Liliang Diamond Co.Ltd(301071) . SZ), North Industries Group Red Arrow Co.Ltd(000519) ( North Industries Group Red Arrow Co.Ltd(000519) . SZ), Henan Huanghe Whirlwind Co.Ltd(600172) ( Henan Huanghe Whirlwind Co.Ltd(600172) . SH);
2) equipment side: the investment demand for high gross profit driven equipment at the production side has increased, and the expansion of production in various provinces and cities has begun to take shape. It is suggested to pay attention to the supply of HPHT synthetic equipment and lay out Sinomach Precision Industry Co.Ltd(002046) ( Sinomach Precision Industry Co.Ltd(002046) . SZ) for diamond cultivation by CVD method.
Risk tip: the downstream demand is less than expected, the production capacity is less than expected, and the industry competition is intensified
