Investment Highlights: Capital expenditure on oil and gas exploration and mining is accelerating. 1) 2012 global oil exploration expenditures increased significantly. The Iranian problem has led to local crude oil production hitting its lowest level since 2002, while international oil giants have increased exploration and mining in other areas to compensate for the adverse effects of Iran. According to Barclays Capital, the global oil and gas company's spending on exploration and mining projects will set a new record in 2012, global oil exploration spending will increase by 20% to reach 90 billion US dollars; 2) domestic shale gas development speed . a) Liu Tienan, director of the National Energy Administration, presided over the implementation of the shale gas 12th five-year development plan in Beijing on June 25th. In the future, the national policy will favor the industry that regulates energy structure adjustment; b) 2012 shale gas The second round of bidding is expected to be carried out in July, and the number of bidding enterprises has increased substantially. At present, more than 70 enterprises have expressed their intentions. The first bidding has only 6 state-owned enterprises; c) The National Development and Investment Corporation signed a strategic cooperation framework agreement with Chongqing on June 26. SDIC will invest 30 billion yuan in shale gas exploration, development and utilization in Chongqing; d) Sinopec's first shale gas capacity construction project was launched in May this year, and strive to build 1 billion cubic meters in Chongqing's Fuling area in 2013. Annual production capacity; e) As of March 22 this year, PetroChina Southwest Oil and Gas Field Company has produced 5.8 million cubic meters of shale gas and tested the commercial water for the first time. Diamond drill companies will benefit directly. At present, about 60% of the global oil and gas production workload is done by diamond drill bits; in the exploration process, the diamond drill bit is used more frequently because of higher drilling rate requirements. Therefore, the acceleration of capital expenditures for oil and gas exploration and mining directly benefits diamond drill bits and related supporting enterprises. The diamond composite sheet is the key material of the drill bit. The domestic related listed companies are Sifangda and Huanghe Cyclone. The micro-powder is the key raw material for the production of composite sheets. The domestic related listed company is Yu Diamond. Combined with the current valuation level, it is strongly recommended that the Henan Diamond and the Yellow River whirlwind recommend the Sifangda. 1) Yu Diamond's single crystal and micropowder businesses will exceed market expectations this year. With the continuous penetration of micro-powder applications and the continuous expansion of thermal conductivity applications, the future development space is huge; 2) Yellow River Cyclone in the second half of this year It will enter the capacity release period of the additional issuance project (pre-alloy binder project, mine composite film project), which will inject new impetus into the company's growth; 3) Sifangda is the leader of domestic polycrystalline composite sheet production, the company's high-end petroleum composite sheet, large The market promotion of products such as size cutters has steadily advanced. Based on the closing price on June 27, the 2012 PE of Henan Diamond and Yellow River Cyclone is less than 20 times, which is highly recommended. For details of the industry and the company, please refer to the relevant report: "Diamond Industry Chain Investment Analysis Report", "Small Micro Powder, Big World". Risk warning: Macroeconomic growth rate fell more than expected
Steel Pipe Fitting,Steel Pipes And Fittings,Galvanized Pipe Fittings,Metal Pipe Fittings
Zhejiang Jndia Pipeline Industry Co., Ltd. , https://www.jndiapipeline.com