SF DIAMOND Co., Ltd.: Riding the Wave of Super‑Hard Material Momentum
The Shenzhen‑listed SF DIAMOND Co., Ltd. (SZSE: 000xxx) has positioned itself as a key supplier of polycrystalline diamond (PCD) and polycrystalline cubic boron nitride (PCBN) products across a broad spectrum of high‑tech and heavy‑industry applications. On 14 October 2025, the broader market witnessed a pronounced rally in the “超硬材料” (super‑hard materials) and “培育钻石” (diamond‑grown) sectors, an environment that has immediate implications for SF DIAMOND’s valuation and growth trajectory.
Market Context
- Sector Surge: Morning coverage from East Money and Sohu highlighted a significant uptick in super‑hard material and diamond‑grown concept stocks. Companies such as Chujiang New Materials, Liantong Diamond, and Huifeng Diamond reported gains exceeding 10 %, while the broader “超硬材料” index enjoyed a swing‑upward bias that helped lift the Shenzhen Composite Index by 0.21 %.
- Policy Backdrop: The Ministry of Commerce and Customs issued an export control directive targeting a range of ultra‑hard materials, including artificial diamond powders and single crystals. Although the policy imposes restrictions on export volumes, it simultaneously signals the strategic importance of these materials in national industrial policy, thereby bolstering demand for domestic producers like SF DIAMOND.
- Institutional Focus: In the preceding week, over 880 companies were surveyed by brokerage houses, with mechanical equipment and high‑tech materials topping the list. SF DIAMOND’s inclusion among the “超硬材料” cluster positions it to attract further institutional scrutiny and capital flow.
SF DIAMOND’s Positioning
| Metric | Detail |
|---|---|
| Industry | Polycrystalline diamond & PCBN tooling, super‑abrasives |
| Product Footprint | PCD die blanks, PDC cutters, PCBN inserts, DTH drill bits, synthetic diamond grits, etc. |
| Applications | Oil & gas drilling, coal mining, machining, aerospace, national defense, and more |
| Export Reach | Products shipped to ~40 countries |
| Market Cap | 5.60 billion CNY |
| Close (12 Oct 2025) | 11.52 CNY |
| PE Ratio | 50.9 (high, reflecting growth expectations) |
| 52‑Week Range | 7.06 – 14.21 CNY |
The firm’s diversified product portfolio serves high‑value, low‑volume niche markets where material performance is critical. Its PCD die blanks for wire drawing and PCBN cutting inserts are especially valuable in aerospace and defense, sectors that benefit from government support and long‑term procurement contracts.
Catalysts for Immediate Upside
- Sector Momentum: The sharp gains in the “培育钻石” and “超硬材料” segments provide a favorable backdrop for SF DIAMOND’s stock, as investors reallocate capital toward companies with strong exposure to these themes.
- Export Policy Duality: While the export controls may reduce immediate sales to certain foreign buyers, they simultaneously elevate the domestic demand for high‑grade, domestically produced hard materials. SF DIAMOND’s established manufacturing base and export network position it to capture a larger share of the domestic market.
- Institutional Attention: The influx of brokerage research into the mechanical equipment and high‑tech material sectors suggests a potential wave of analyst upgrades. Positive coverage often translates into short‑term price appreciation as portfolio managers adjust their holdings.
Risks to Monitor
- Export Constraints: The new export controls could compress margin if SF DIAMOND’s revenue mix is heavily weighted toward overseas sales.
- Commodity Price Volatility: Raw material costs for PCD and PCBN substrates can fluctuate, affecting profitability.
- Competitive Landscape: Rapid technological advances in alternative super‑hard materials (e.g., synthetic diamond films, advanced ceramics) could erode SF DIAMOND’s market share if the company fails to innovate.
Forward Outlook
Given the current market enthusiasm for super‑hard materials and the firm’s robust product lineup, SF DIAMOND is well‑positioned to benefit from the near‑term rally. The 52‑week high of 14.21 CNY suggests that the stock still has room to climb within the prevailing market context. However, investors should remain vigilant about policy developments and commodity pricing that could temper the upside.
In summary, SF DIAMOND’s strategic alignment with high‑technology industrial applications, coupled with favorable sector dynamics, places it on an upward trajectory. The company’s capacity to navigate export restrictions while capitalizing on domestic demand will determine the sustainability of its growth momentum in the coming quarters.
