Yu Diamond (300064): the comprehensive competitiveness of capacity release
Combination Screw, Sem Screw, Combination Screws Novelty Trading Development Co.,Ltd , http://www.novelty-hardware.com
The company announced the results of the first three quarters of 2011:
1. From January to September 2011, the net profit attributable to shareholders of listed companies was 1080-110 million yuan, an increase of 78.91%-82.22% over the same period of last year, and the basic earnings per share was about 0.36 yuan.
2. In the third quarter of 2011, the net profit attributable to shareholders of listed companies was 4173-4373 million yuan, an increase of 74.71%-83.08% over the same period of last year, and the basic earnings per share was about 0.14 yuan.
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The company is mainly engaged in the research and development, production and sales of synthetic diamond and its raw and auxiliary materials, as well as the research and development of diamond synthesis equipment.
The company's performance growth was mainly due to the company's capacity release and comprehensive competitiveness, resulting in sales growth. The over 340 million carats of synthetic diamonds are expected to have reached production. In 2011, the total production capacity of synthetic diamonds will be 1.06 billion carats. The core advantage of the company lies in the large size of the artificial synthetic diamond synthesis chamber, and the gross profit margin is at the leading level in the industry. The gross profit rate of synthetic diamond in the first half of 2011 was 46.99%.
The company's future highlights: First, in May 2011, the company announced a 1.02 billion kran synthetic diamond project, with a total production capacity of 2.08 billion carats after full production, which will form a three-pronged trend with the South-Central masonry and the Yellow River cyclone; The micro-brick line project designed and produced special micro-diamond lines of 0.33mm and 0.12mm, with annual production capacity of 14,400km/year and 132,000km/year respectively, and increased capital of 170 million in September using supermodel funds.
Increasing the company's profit forecast: In 2011 and 2012, the EPS was 0.52 yuan and 0.68 yuan respectively. According to the closing price of 18.54 yuan on October 14, the corresponding PE was 36 times and 27 times respectively, maintaining the “overweight†investment rating.