Jiangnan Red Arrow: Super hard material faucet turned out

**Abstract** Since 2012, Jiangnan Red Arrow has officially initiated a major asset restructuring and private placement plan. The current asset injection has been successfully completed. The assets involved in this transaction include 100% equity of Zhongnan Diamond, which was listed through a backdoor listing. Zhongnan Diamond is a leading domestic player in the synthetic diamond industry, known for its strong position across the supply chain, scale, cost efficiency, and technological capabilities. We are highly confident in the long-term growth potential of both the industry and the company, and we are issuing our first "Strong Buy - A" investment rating. Regarding the major asset injection and private placement, Jiangnan Red Arrow issued 410 million shares at a price of 9.68 RMB per share, acquiring 100% of Zhongnan Diamond's equity, with a target valuation of 3.97 billion RMB. The transaction has now been finalized, and Zhongnan Diamond has become a subsidiary of Jiangnan Red Arrow. Its core business involves the production and sales of super-hard materials, including synthetic diamonds and boron nitride. In addition, the company plans to issue an additional 137 million shares at no less than 9.68 RMB per share to raise 1.32 billion RMB for new super-hard material projects. This secondary offering is still in the planning stage. The synthetic diamond industry, particularly under Chaoyang Industrial, is currently experiencing rapid development. The industry size is growing quickly, technology is advancing rapidly, and downstream demand is expanding at a significant pace. This indicates a promising future with substantial room for growth. China is the world’s largest producer of synthetic diamonds, with output exceeding 12 billion carats annually, accounting for over 90% of global production. The industry has maintained a double-digit compound annual growth rate (CAGR) over the past decade. Technological advancements have led to improved efficiency and reduced costs, opening up new market opportunities. Demand from sectors such as construction, machinery, electronics, and energy extraction remains robust, suggesting strong long-term growth potential. Zhongnan Diamond is a key player in the synthetic diamond market, boasting significant advantages in scale, industrial integration, technology, and brand recognition. Currently, the industry is dominated by a few large players, with the top three companies accounting for over 80% of total production capacity. Zhongnan Diamond leads the market with a 45% share, far outpacing its competitors. The industry is emerging from a low-growth phase, showing renewed momentum. During this period, the company is well-positioned to benefit. Additionally, it has a fully integrated upstream and downstream industrial chain, which enhances its operational efficiency, quality control, and brand value. With 58 patents to its name, the company has achieved comprehensive coverage across raw materials, equipment, synthesis, and maintenance, ensuring efficient resource allocation and a significant cost advantage. For the first time, we are assigning a “Strong Buy - A” rating. The company has committed to earnings of 390 million, 420 million, and 460 million RMB for the years 2013, 2014, and 2015, respectively. Moreover, the income generated from future private placements and investment projects is expected to add 0.52, 0.66, and 0.9 RMB per share. Based on these projections, the company’s P/E ratios are estimated at 23X, 18X, and 13X, supporting our strong recommendation. **Risk Warning**: There is a risk that inventory levels may rise faster than expected, and attention should be paid to the ability to absorb new production capacity in the future.

Air Cooled Tig Welding Torch

Tig Welding Torch have a type named air cooled tig welding torch, it have the model number: WP-9 Tig Torch, WP-17 Tig Torch, WP-26 Tig Torch. When you use Tig welding torch, Tig Welding Nozzle will ejected Tungsten Inert Gas to produce a protective layer around the arc cut off the air in order to prevent its tungsten. Prevent its welding tungsten, pool and adjacent heat-affected zone, to obtain high-quality welds. We are a manufacturer in China main produce tig welding torches.

WP-9 Tig Torch, WP-17 Tig Torch, WP-26 Tig Torch

EDAWELD COMPANY LIMITED , https://www.jsedaweld.com