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力量钻石(301071):募投项目陆续投产 产量稳步增长

Power Diamond (301071): Fundraising projects have been put into operation one after another, and production has been growing steadily

安信證券 ·  Jan 31, 2023 00:00  · Researches

Power Diamond issues annual results forecast for 2022:

In 2022, the company is expected to achieve a net profit of 4.5-480 million yuan, an increase of 85.8 percent over the same period last year, and a deduction of 4.3-450 million yuan, an increase of 87.6 percent over the same period last year. From the perspective of dismantling Q4 alone, the company expects to achieve a net profit of 1.0-130 million yuan, an increase of 21.1%, 59.4% over the same period last year, and an estimated deduction of 0.9-110 million yuan, an increase of 23.7% over the same period last year.

Fund-raising projects have been put into production one after another, and production capacity has expanded steadily.

On September 4, 2022, the company announced that it would increase its production capacity and raise a total of 3.9 billion yuan for diamond and industrial diamond production expansion. according to the prospectus, it will purchase a total of 1800 six-sided jacking machines, of which 1500 will be used to cultivate diamond production. after the project reaches production, the production capacity of cultivated diamond and diamond will reach 341.3 million carats per year and 2.49 billion carats per year, respectively. During the reporting period, the company implemented closed-loop management under the background of the epidemic situation to ensure stable production, fund-raising projects were put into production one after another, and the output increased rapidly.

Cultivate diamond penetration to improve the company's performance growth.

According to the GJEPC,2022 December, India cultivated diamond blank import value of 111 million US dollars, year-on-year-15.5%, month-on-month + 44.2%, import permeability is 6.8%/+0.9pct, downstream replenishment demand led to significant improvement in blank import month-on-month The export value of bare diamonds is 102 million US dollars, which is-0.9% from the same period last year and 2.8% from the previous year. The export penetration rate is 7.5%/+1.9pcts. As consumers in the United States tend to be rational under high inflation, the penetration rate of cultivated diamonds is expected to continue to increase.

Therefore, the company is expected to benefit from the cultivation of diamond prosperity. In addition, on August 16, 2022, the company disclosed that it and Chao Acer jointly invested in the establishment of Sheng and Shengyao Technology (Shenzhen) Co., Ltd., to create, operate and cultivate diamond jewelry brands, open up the upper and lower reaches of the industrial chain, and is expected to contribute to a new increase in performance.

Investment advice:

Increase holdings of-An investment rating. As the company's performance in 2022 is affected by the epidemic and downstream demand and price fluctuations, combined with the performance forecast, we adjust our profit forecast. It is estimated that the company will achieve a net profit of RMB 4.7 billion in 2022-2024. + 94.5%, + 94.5%, 77.1%, 47.0%. Give 2023 30xPE, corresponding to the 6-month target price of 170.89 yuan.

Risk tips: cultivating diamond demand is not as expected; fund-raising projects can not achieve the expected benefits; six-sided jacking press is in short supply and so on.

The translation is provided by third-party software.


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