Investment Rating - The report does not explicitly state an investment rating for the diamond heat dissipation industry, but it highlights significant growth potential and market opportunities [1][23]. Core Insights - The diamond material exhibits superior thermal conductivity, making it a promising candidate for high-performance chip cooling solutions, especially as chip integration and power density increase [4][15]. - The diamond heat sink material has a thermal conductivity of 2000-2500 W/(m·K), which is four times that of copper and eight times that of aluminum, ensuring stability during temperature cycling [15][16]. - The market for diamond heat dissipation is projected to reach 9.7 billion yuan by 2032, indicating a substantial growth opportunity as technology matures [23][24]. Summary by Sections 1. Diamond Materials: Excellent Chip Cooling Materials - High-power chip cooling issues need urgent solutions, with diamond materials expected to be widely applied in aerospace, electronics, and other rapidly developing fields [4][6]. - The MPCVD method is identified as the optimal approach for producing semiconductor diamond materials, offering high purity and quality [21][19]. 2. Related Companies: World, Sifangda, Guojijinggong - **World**: A leading enterprise in superhard tools, with a stable revenue growth of 12.54% in 2024, focusing on diamond materials [26][28]. - **Sifangda**: A leader in composite superhard materials, with a focus on self-developed MPCVD equipment to expand applications in precision tools and chip heat sinks [30][33]. - **Guojijinggong**: A leading enterprise in superhard materials, showing accelerated revenue and net profit growth, with a focus on MPCVD equipment [34].

Core Viewpoint - The International Carbon Materials Conference showcased Hengsheng Energy's subsidiary Huamao Technology, highlighting its advancements in CVD diamond technology and its strategic positioning within the energy, environmental, and industrial sectors, marking a potential second growth curve for the company [1]. Group 1: Technology and Product Performance - Huamao Technology focuses on the MPCVD method for high-end diamond production, establishing a solid technological barrier with 17 core patents, achieving a functional diamond material yield rate exceeding 90% and cultivated diamond yield rate above 80%, significantly higher than industry averages [2]. - The company's core products, including cultivated diamonds and semiconductor heat sink plates, demonstrate competitive performance, with cultivated diamonds available in sizes from 7×7 to 20×20, achieving G color and VS-VS1 clarity, and heat sink plates exhibiting thermal conductivity of 2200W/mK for single crystal and 1200W/mK for polycrystalline [3]. Group 2: Capacity and Investment - Huamao Technology plans to invest approximately 1.2 billion yuan to establish a project for 2.6 million carats of wide bandgap semiconductor single crystal diamonds and cultivated diamonds, with 200 new MPCVD devices already in production, aiming to become a core supplier of CVD diamonds in China [4]. Group 3: Market Strategy and Trends - The company adopts a dual-driven strategy focusing on functional materials and consumer-grade diamonds, targeting high-value markets in thermal management and jewelry, with a significant opportunity in the growing demand for CVD diamonds in various high-tech applications [5]. - In the consumer diamond sector, Huamao Technology is launching themed products and experiences to attract younger consumers, with cultivated diamonds priced at 1/5 to 1/10 of natural diamonds, aligning with the environmental values of the Z generation [6]. - The global cultivated diamond market is projected to grow significantly, with a forecasted compound annual growth rate of 49% for China's cultivated diamond exports from 2026 to 2030, and the diamond thermal management market expected to expand from $0.5 billion to $15.24 billion by 2030, indicating substantial growth potential [7].