Market Review
In the current period (from January 17 to January 21), the CSI 300 rose 1.1% and the machinery sector fell 3.0%, ranking 21 among the 28 Shenwan industries. In terms of industry segments, lithium battery equipment increased the most, up 0.7%; Plastic processing machinery fell the most, down 7.8%.
This week’s view
In December, the import and export volume increased significantly, and the cultivation of diamonds continued to be recommended.
According to the latest data on the official website of Indian diamond import and export, in December, the import of cultivated rough diamonds was US $132 million, a year-on-year increase of 104.56% and a month on month increase of 54.63%. In 2021, the total import of cultivated rough stones was US $1.13 billion, a year-on-year increase of 163%. In December, the export of cultivated diamonds was US $103 million, a year-on-year increase of 65.56% and a month on month increase of 20.47%. In 2021, the total export of cultivated diamonds was US $1.144 billion, a year-on-year increase of 96.42%. In terms of permeability, the permeability of imported cultivated rubble in December was 5.92%, an increase of 2.37 PCT over the same period in 2020, and the annual permeability in 2021 was 5.99%, an increase of 1.53 PCT over 2020. In December, the penetration rate of export cultivated diamonds was 5.51%, an increase of 2.03 PCT over the same period in 2020, and the annual penetration rate in 2021 was 4.58%, an increase of 0.63 PCT over 2020. It can be seen that in December, the amount of imported cultivated rough stones and exported cultivated diamonds was greatly increased, and the industry was in a state of booming production and sales. Previously, in November 2021, the international diamond cultivation Association igda launched the 2.0 reform plan, which is committed to expanding the leadership of igda and implementing consumer oriented promotion and training programs through local igda representatives all over the world. An initial goal is to shift the focus from the United States to the world to increase consumer demand. Although the current penetration rate is only in single digits, as the cultivation diamond industry is well known and accepted by more consumers, more emerging consumption and alternative demand will provide broad growth space for cultivation diamonds in the future. We are optimistic about its long-term development prospects!
Investment suggestions:
At present, the targets of the diamond cultivation sector have been significantly adjusted, but the industry fundamentals are still good. We continue to focus on North Industries Group Red Arrow Co.Ltd(000519) , Henan Liliang Diamond Co.Ltd(301071) , Henan Huanghe Whirlwind Co.Ltd(600172) , Sf Diamond Co.Ltd(300179) , Sinomach Precision Industry Co.Ltd(002046) , Beijing Worldia Diamond Tools Co.Ltd(688028) .
Risk tips
Macroeconomic fluctuations, external demand fluctuations.
