Product supply is in short, the market penetration rate is only 7%, and Chinese companies are expected to live later -Qianzhan Report Report

Source: WeChat public account "Daida" (WeChat public account ID: daoda1997)

Lao Tie, good weekend, I am Qian Yanjun.

Recent hotspots in the market, such as integrated die -casting, humanoid robots, and semiconductors, which are relatively strong. Qian Yanjun thought about it, only in these hotspots with good development prospects, only the cultivation of diamonds has not been said.

Next, Qian Yanjun will share with you the investment logic of cultivating the diamond industry. Pay attention to the WeChat public account "Daida" and read more "Qianzhan Report".

Cultivate the diamond industry chain combing

Cultivating diamonds (pure carbon crystals) is formed by simulating the growth environment of natural diamonds, and the realization of physical, chemical, and optical properties is completely consistent with natural diamonds. Different from Mosang (carbon silica) and rhinestones (cubic oxidation), artificial and natural diamonds are the same substances. The naked eye cannot be distinguished and can only be detected by instruments.

The upstream of the cultivation of the diamond industry chain is the production of rough diamonds, the middle reaches of the diamond, and the diamond sales of the downstream.

Upstream: Cultivating diamond production is all over the world, mainly North America and East Asia.

Midstream: Labor -intensive industries, India's labor force is cheap, 95%of diamonds go to India processing. India is currently the most important rough drill importer and diamond processing country. According to the Bain Consultation Report, India ’s rough drill import volume in 2020 accounted for about 95%of the world's. Cultivating diamonds and diamonds is the same industrial chain, and it is also processed by India.

Downstream: India is sold globally. According to the Dabirs report, nearly 80 % of the United States contributed to cultivating diamond consumption.

Cultivating diamond demand has increased year by year

In recent years, with the continuous development of the marketing of diamond brands, consumers' awareness of the cultivation of diamonds has gradually deepened. Ten years ago, less than 10%of jewelry consumers heard of cultivating diamonds; by 2020, jewelry consumers with different gender, age, and family income have reached 80%of the cognitive cultivation of diamonds.

MVEYE's investigation of the cultivation of diamonds in the United States found that consumers' consumer demand for 2CT (carat) and 3ct (carat) main stone when purchasing wedding rings continued to rise. Based on the improvement of this demand level, MVEYE surveys showed that more than three -quarters of consumers said that because the cultivation of diamonds can save 30%of costs and have the opportunity to buy larger and better diamonds, compared with natural diamonds, compared with natural diamonds, compared with natural diamonds, compared with natural diamonds, compared with natural diamonds, compared with natural diamonds, compared with natural diamonds, compared with natural diamonds, compared with natural diamonds, it is compared to natural diamonds. They may buy more diamonds.

At present, the consumption of diamond jewelry in the United States accounts for about 80%of the world's, consumption is about $ 3 billion/year, and the market penetration rate is about 7%. Tianfeng Securities believes that with the continuous establishment of the brand's mentality of consumers, the continuous improvement of consumer cognition, and the penetration rate of diamonds in the current diamond consumption stock market is expected to continue to increase.

Zhejiang Business Securities pointed out that my country's per capita diamond consumption is only 1/20 in the United States. Diamond consumption demand has increased year by year. As a strong consumption country, it has a wide range of growth space in the later period. Pay attention to the WeChat public account "Daida" and read more "Qianzhan Report".

According to GIEPC's India's cultivation of diamond import and export data, the industry's prosperity is still rising. You can see that the cultivation of diamond penetration is steadily increasing, from about 1%in 2018 to nearly 6%. Fall, the penetration rate of cultivation of diamonds is expected to continue to increase, and Tianfeng Securities is expected to exceed 10%.

Global cultivation of diamonds in short supply

According to Bain Consultation, the total global cultivation of diamonds in 2020 is about 6 million to 7 million carats, of which about 50%of the output in China, about 3 million carats. According to the Dabirs report, the global natural diamond output in 2020 was 114 million carats, while the cultivation of diamonds accounted for only 5%of natural diamonds. According to Zhiyan Consultation data, it is expected that global cultivation of diamonds in 2021 will reach 10.4 million carats, and global cultivation of diamonds will reach 27.8 million carats in 2025. The future development space will be huge.

According to statistics on related companies, Tianfeng Securities is expected to have a short volume period of global cultivation of diamonds from 2021-2023, but the speed of production capacity release will gradually decrease to a steady growth rate. As the production of diamonds and industrial diamond capacity can be achieved, it can be achieved. Fast switching, so Tianfeng Securities believes that the cultivation of diamond supply will not have excess. Pay attention to the WeChat public account "Daida" and read more "Qianzhan Report".

Tianfeng Securities predicts that the global cultivation diamond market has been dominated in recent years. As the cultivation of diamond production continues to volume, the sales price of diamond terminals will decline, but the room for exploration will be limited. It is estimated that by 2025, the global cultivation of diamond terminal markets is expected to exceed 16 billion US dollars, of which the Chinese market is expected to account for about 15%to $ 4 billion.

To sum up, with the decline of natural diamond output, the gradual release of the cultivation of diamond production capacity, the penetration rate of the cultivation of diamonds will be further increased. From the perspective of demand, as consumers' concepts change, the cultivation of diamond sales is expected to continue to rise. The double production and sales will help the industry's prosperity of the cultivation of diamonds.

Guangfa Securities pointed out that in the past, natural diamond mines were monopolized in the hands of the four giants, and China did not participate. Now, China occupies half of the production of diamond rough diamonds, so it is a great opportunity for Chinese diamond production companies.

Risk tips: 1. The end price of the cultivation of diamonds will decrease exceeded expectations; 2. Increased competition in manufacturers; 3. The industry's development is not as good as expected.Well, I will talk to the old iron today, I wish you all the time!

The reference research report of the Qianzhan Research News in this issue is as follows:

Guangfa Securities-Cultivation of Diamond Industry: From industrial products to consumer goods, cultivate diamonds to rise rapidly

Tianfeng Securities-Cultivation of the Diamond Industry Research Report: Brands are full of flowers, breeding diamonds

Zhejiang Business Securities-Cultivation of Diamond Industry: Low the penetration rate, the growth space of the original stone faucet

(Qian Yanjun)

(The content of this article is only used as a reference and the basis for investment. Based on this, the risk is on its own)

Daily Economic News

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