The Yellow River Whirlwind: Super Hard material leading stock price steadily pushes high

The company is located in Changge, Henan province, is controlled by the Yellow River Industrial group, China-Japan joint venture in the domestic largest man-made diamond production enterprises, production capacity of about 3 billion carats/year, 08 production of about 2 billion carats, the domestic market share of about 50%. The company is the leading enterprise of synthetic diamond production, the production and sales of synthetic diamond are ranked first in the world. Henan province is the domestic superhard materials production and research of the traditional strong province, the company has a state-level enterprise Technology Center, and with the Zhengzhou abrasive cutting Institute and other research institutes close cooperation, so technically in the absolute leading level, and domestic counterparts are not the same level of competition. Company synthetic diamond using static pressure solvent-catalyst method: Pressure to produce ultra-high pressure (5000~1000 MPa), alternating or direct current through graphite heating to produce high-temperature (1200~2000℃), and add metal or alloy as solvent-catalyst, so that graphite into diamond. With the industry of thousands of small and medium-sized enterprises, the company large particles of a higher proportion, and the company has been aware of the process by adjusting the increase in the ratio of high-end products, the formation of differentiated competition. Company production of presses are independent research and development, ordering parts, the workshop itself assembled.　　Through technical improvement, the production rate of the new process is higher than 15%. Superhard materials, industry prospects broad superhard materials generally refers to diamond, cubic boron nitride and its poly-structure materials, can enhance the hardness and strength of traditional tools, is currently widely used in stone mining tools, machine tools, building decoration tools, highway construction tools, coalfield, oil field excavation tools, Precision instrumentation and other fields. The future with the production and application technology, in addition to the existing applications to high-end extension, but also is expected to replace the silicon materials, open up the electronics industry, aerospace and other new fields. Diamond is the most important superhard material at present, because of the high value of natural diamond, synthetic diamond is widely used in industrial production. The synthetic diamond technology is the condition of high temperature and ultrahigh pressure, which makes the graphite sheet formed the c-c bond locally, and completes the transformation of the graphite lattice structure into the diamond structure. At present, the annual demand for synthetic diamond in 5 billion carats, but the basic is mainly in low-end demand.　　Generally speaking, the door of diamond material application has not been really opened; Superhard materials as an important branch of new materials, the future has great potential for development. Benefiting 4 trillion of investment, two-quarter new project construction progress will be accelerated with 4 trillion investment in the sustained development of infrastructure, domestic stone demand will rebound, which led to increase the amount of stone mining. Since about 50% of the company's diamond is used to make stone mining tools, the company indirectly benefited from the increase in infrastructure investment. Due to the increase in infrastructure construction of the company has a positive impact on the entire conduction process has a certain lag, we believe that the impact of the two quarter will be apparent, the diamond industry will have a warming sign. Company 08 announced the use of its own capital investment 780 million construction 22000 tons of press synthesis of coarse grained diamond crystal and large diameter polycrystalline composite film industryof the project. Due to the economic crisis, diamond prices continue to decline, so the project implementation schedule is slower than planned. At present, plant construction has been completed, there are 40 or so presses have begun to assemble.　　With the industry's warming, we expect the new project construction at the end of the two quarter will be accelerated, the first phase presses the fastest in the 4 quarter of this year will be able to contribute revenue. Second-tier market, the stock formed a clear upward channel, volume has been continuously amplified effectively support the stock price higher. Today, the stock close to create a short-term new high, K-line form the formation of Shuang Ying Yin Posture, Outlook is expected to continue to rise along the 5th EMA, investors can focus on.