Synthetic diamonds still have bright prospects in the first half of the year

Diamond can be processed not only into jewelry, but also in industrial production. However, because the output is too small and found to be extremely difficult, synthetic diamond has become the best alternative. As the only synthetic diamond listed company in China, Yu Diamond (300064) naturally attracted institutional attention after its listing. The industrial boom is still high, which makes analysts believe that there is still room for growth in Yu Diamond.
The processed diamond has high hardness and good wear resistance and can be widely used for cutting, grinding and drilling. It has high thermal conductivity and good electrical insulation and can be used as a heat sink for semiconductor devices; it has excellent light transmittance and resistance. Corrosive, also widely used in the electronics industry. Yao Lei, an analyst at Ping An Securities, pointed out that the main application fields of the diamond industry are: 1. Stone processing industry; 2. Mechanical processing industry; 3. Electronic and electrical industry; 4. Drilling and mining industry; 5. Optical glass and gemstones. Processing Industry. According to the division of the industry, it is not difficult to see that the industry is more involved in the light industry with rapid growth in performance. According to the latest statistics of the National Bureau of Statistics, the industrial prosperity index for the first quarter of this year was 130.1 points, up 2 points from the previous quarter, and 39 industrial enterprises were in the boom zone for four consecutive quarters.
As an important part of industrial production, the simultaneous performance of Yu Diamond is “stunning”. According to the company's latest quarterly report, Yu Diamond achieved operating income of 57.354 million yuan in the first three months of this year, an increase of 63.3% over the same period of the previous year, and revenue increased by 5.65% from the previous month; operating profit was 20,826,400 yuan, an increase of 66.35% over the same period of the previous year. Operating profit increased by 37.98% from the previous month, net profit attributable to the parent company was 17.732 million yuan, an increase of 47.55% over the same period of the previous year, and net profit increased by 21.86%.
“The company's development speed is higher than the overall growth rate of the industry, indicating that the industrial growth of downstream enterprises has begun to accelerate.” He told the author that the biggest feature of industrial production is “booking”, which is based on the production and sales of this season. Volume, while Yu Diamond's performance growth in the first quarter not only increased year-on-year, but also higher than the total production and sales in the fourth quarter of last year, indicating that the procurement volume of downstream enterprises is increasing. The global manufacturing industry is shifting to a developing country headed by China, which has driven the development of artificial diamond manufacturers in China. With the improvement of the technical level of raw and auxiliary materials, synthetic equipment and synthetic processes for synthetic synthetic diamonds in China, domestically produced high-quality and reasonably priced synthetic diamond products will be more and more recognized by domestic and foreign customers.
However, he also believes that due to the continuous improvement in the production technology and technological level of synthetic diamond products in recent years, the sales price of synthetic diamond products has declined, and the market competition has become increasingly fierce. In the future, the sales price of synthetic diamonds may still have room to fall or fluctuate, which will adversely affect the profitability of Yu Diamond. Due to the company's performance growth in the first quarter is too fast, according to the performance fluctuations of similar industries, the company's production and sales in the second half may be high, but the first half of the year is still guaranteed.

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