1. What is a synthetic diamond? What about the industrial chain?

(1) What is cultivating diamonds?

Artificial diamond is an artificial diamond cultivated by simulating the natural forming environment of natural diamond in the laboratory. Unlike natural diamonds, which need to go through millions or even billions of years in the depths of the earth, the methods of synthesizing and cultivating diamonds mainly include HPHT high pressure and high temperature method and CVD chemical vapor deposition method, and the cultivation time is about half a month to one month.

There is little difference in the formation temperature between the diamond cultivated in the laboratory and the natural diamond crystal, and the chemical composition and physical properties are completely consistent, which can not be distinguished by the naked eye.

At present, cultivating diamonds has become a new choice in the field of diamond consumption because of its high cost performance, and is widely used to make diamond ornaments, such as diamond rings, necklaces, earrings and other fashionable consumer goods.

(2) Industrial chain: The gross profit margin of upstream and downstream is the highest, and China is one of the main diamond producing areas.

From the perspective of industrial chain, the upstream of diamond cultivation industrial chain covers the supply of raw materials such as production equipment and metal catalysts, as well as the production of cultivated diamond blanks. From the perspective of profitability, the gross profit margin of upstream rough diamond production is as high as 60%. Among them, in the industrial chain, the upstream HPHT method is mostly used to cultivate diamond production capacity in China, while the CVD method is mainly distributed in the United States, Europe, the Middle East, India, Singapore and other places. In 2020, the global cultivated diamond output will be about 6-7 million carats, and nearly 50% of cultivated diamonds in China will be produced by HPHT method, among which Yellow River Cyclone, Zhongnan Diamond and Henan Diamond rank in the top three.

At the same time, cultivating the production of diamonds puts forward higher requirements for the R&D strength, technological level and quality control of enterprises. Therefore, only the leading enterprises with scale advantages in the field of synthetic diamonds have capital and scale advantages to enter the R&D and production of diamond cultivation, and the upstream production enterprises have certain barriers.

Cultivate the middle reaches of diamonds, focusing on diamond trade, processing and design, and the gross profit margin of middle reaches processing is below 10%. At present, India is the cutting and grinding center for cultivating diamonds in the world. From 2065438 to 2020, India imported more than 80% of the world's rough diamonds, and its cutting and grinding processes were concentrated in surat and other places, forming a highly concentrated processing industry cluster. China diamond cutting and grinding: The factories are scattered in Guangdong, Guangxi, Henan, Hunan and other places, and the finished diamonds after cutting and grinding are sold all over the world.

The downstream of diamond cultivation will carry out terminal retail and marketing promotion of diamonds, and the gross profit margin will also reach 60%. At present, the United States is the most mature market for cultivating diamonds in the world. In terms of consumption structure, the United States and China account for about 80% and 65,438+00% of the global cultivated diamond consumption market respectively. In terms of the number of retail brands, there are 25 diamond brands in the United States, 19 in China and 9 in Europe.

Second, why are you optimistic about this industry?

1. There is no obvious difference in physical properties between cultivated diamonds and natural diamonds, but the retail price is about 45% of that of natural diamonds, which has a significant cost-performance advantage. Under the background of slow growth in the supply of natural diamonds, cultivated diamonds are expected to replace part of the demand for natural diamonds.

With the continuous improvement of synthetic diamond technology, gem-grade diamond single crystals with certain color, weight and purity can be used as cultivated diamonds.

Comparatively speaking, there is no obvious difference in crystal structure integrity, transparency, refractive index and dispersion between cultivated diamonds and natural diamonds, but the retail price is much lower than that of natural diamonds. The retail price of 20 19 cultivated diamonds is about 45% of that of natural diamonds, while the sales price of ornaments made of cultivated diamonds is about 30%-50% of that of natural diamonds of the same grade, which greatly reduces the purchase threshold of consumers.

At the same time, the output of natural diamond rough has been declining in recent years. The Diamond Industry Report 2020-202 1 issued by Bain Company shows that the global rough diamond production will increase slowly or even decrease in the next 10 year. It is predicted that under pessimistic circumstances, the global production of natural rough diamonds will decrease by 1%-2% on average every year, but the global demand for diamond consumption will continue to increase. I hope to replace the demand for some natural diamonds with higher cost performance.

2. Global jewelry giants have entered the market to cultivate diamond business, which is expected to cultivate consumers' habits and cognition, and the industry penetration rate is expected to increase rapidly.

Cultivate diamonds as a new track in the jewelry industry, and jewelry and diamond brands actively enter the market to cultivate consumer habits. In 20 16, Swarovski founded Diama, a diamond planting brand. 20 18 In May, De Beers, the world's largest diamond producer, announced the launch of the diamond planting brand Lightbox. In addition, in May, 20021,Pandora, one of the largest jewelers in the world, announced that it would stop using mined diamonds to make jewelry, and only use diamonds produced in the laboratory in the future.

At the same time, domestic jewelers are also actively laying out and cultivating the diamond industry. On 20021August 12, Yuyuan Jewelry, which owns domestic first-line jewelry brands such as "Old Temple Gold" and "Yayi Gold Store", launched its own diamond brand "Lusante" and started trial operation in online Tmall flagship store. This is the first cultivated diamond brand launched by top domestic jewelers.

At present, the penetration rate of cultivating diamond industry is about 6%, and jewelry giants at home and abroad have launched cultivating diamond brands one after another, which is expected to cultivate consumers' habits and cognition, thus driving the penetration rate of cultivating diamond industry to increase rapidly.

3. The gradual establishment of industry standards has provided a basis for cultivating the value circulation of diamonds.

Whether the industry is standardized or not is one of the important factors that determine whether the industry can flourish, because any industry that can be bigger and stronger needs a unified standard to determine the value of goods in order to circulate quickly.

At present, the standards for cultivating diamond industry are being formulated at an accelerated pace, which provides a basis for cultivating the circulation of diamond value and promotes the standardized development of cultivating diamond industry.

For example, in June 5438 +2020 10, GIA (American Gemological Institute) announced that the new version of the cultivated diamond inspection report was officially launched; Recently, the National Jewelry and Jade Quality Supervision and Inspection Center (NGTC) has updated the identification and quality evaluation of synthetic diamonds. At present, NGTC has been able to issue laboratory cultivation certificates for diamond inlaid jewelry, and it is said that laboratory cultivation certificates for loose diamonds will be issued in the future.

On the whole, in 2020, the global market for cultivated diamond ornaments will be about 68 billion yuan, and the output of cultivated diamonds will still increase by 16.7% year-on-year, which is significantly higher than that of natural diamonds. It is estimated that by 2025, the global market for cultivating diamond ornaments will be140 billion yuan, with a compound growth rate of 15.5%.

Third, related stocks.

Yellow River Cyclone 600 172: One of the largest diamond producers in China, 202 1 specializes in superhard materials, and it is a supplier of superhard materials with the leading scale, the most complete varieties and the most complete industrial chain in China. The main products of superhard materials produced by the company are all kinds of diamonds (such as industrial diamonds and gem diamonds), metal powders, superhard composite materials (composite plates), superhard tools and diamond wire saws.

In 2020, the company's cultivated diamond sales accounted for about 20% of the global cultivated diamond sales market, of which high-end quality accounted for more than 50%. In 20 15, the company realized the industrialization and market-oriented mass production of the project "Development and Industrialization of Gemstone Diamond Series Products". At present, the company has a stable 3-5 carat diamond market for jewelry at home and abroad.

In 2020, the company's performance loss was mainly dragged down by the early acquisition of the smart business of famous craftsmen. The company sold all the shares of the intelligent business of famous craftsmen, and 202 1 refocused the main business of superhard materials. In the first quarter, the company's revenue reached 63 1 10,000 yuan, a year-on-year increase of 56%. At the same time, the profit side turned losses into profits, and the net profit returned to the mother reached10.29 billion yuan.

Zhong Bing Red Arrow 0005 19: The subsidiary Zhongnan Diamond is one of the largest manufacturers of synthetic diamonds in China.

Zhong Bing Hongjian's main business includes three business segments: special equipment business segment, superhard material business segment, special purpose vehicle and auto parts business segment. Among them, Zhongnan Diamond, a wholly-owned subsidiary, is mainly responsible for the superhard materials business sector and is one of the largest diamond producers in China. In 2020, Zhongnan Diamond will realize revenue of 19.2 1 billion yuan, accounting for 29.72% of the revenue, and realize net profit of 4 1 billion yuan.

Zhongnan diamond mainly produces diamonds cultivated by HPHT process, and the products are mainly 2- 10 carats. The company has mastered the synthesis technology of "cultivating diamond single crystal with 20-50 carats", and cultivated diamonds with 20-30 carats can be produced stably in batches. At the same time, the company has also mastered the centimeter-level high temperature and high pressure CVD seed crystal preparation technology, and the preparation technology of CVD diamond products has reached the international mainstream level. In 20 19, the company invested in the construction project of a gem-grade cultivation diamond production line with an annual output of120,000 carats by high temperature and high pressure method, which is expected to reach production in June 2022.

Cultivate stocks related to the concept of diamonds, cultivate the cost-effective advantages of diamonds+cultivate consumption of various jewelry and diamond brands, and cultivate diamonds will replace the share of some natural diamonds. The industry is expected to break out, and the potential market size is expected to reach 100 billion. We sorted out a stock related to cultivating the concept of diamonds.

SINOMACH Seiko 002046: The revenue of superhard materials and products will account for 20.39% in 2020. By the end of 20 years, the progress of the new high-power MPCVD large single crystal diamond project was 59.87%, mainly cultivating synthetic diamonds from consumer and industrial manufacturers.

*ST King Kong 300064: In 2020, the revenue of superhard materials will account for 88.82%. The company is committed to cultivating and spreading the concept of diamond consumption, cultivating the promotion of diamond culture and building a brand sales system. In 20 14, it achieved a breakthrough in large single crystal technology and became the first enterprise in China to realize large-scale mass production of large single crystals.

Wald 688028: In 2020, the revenue of superhard composite materials will account for 8.99%, and high-end superhard tools and superhard materials such as functional CVD diamond materials and devices and decorative CVD diamonds (cultivating diamonds) will be produced and sold on a large scale.

Sifangda 300 179: The company is a composite superhard material enterprise with obvious scale advantages in China, and its products include polycrystalline diamond compact for oil/gas drilling, diamond compact for coalfield and mine, etc.

Retailer:

Yuyuan shares 600655: In 2020, jewelry fashion income will account for 50.32%. The company launched the cultivated diamond brand "LUSANT", which is the first cultivated diamond brand launched by top jewelers in China.