China petrochemical oil four sides of the Yellow River cyclone and diamond the company expects 2012 global oil and gas companies in exploration and exploitation projects spending will set a new record, global oil exploration spending will increase by 20%, to $90 billion; 2) acceleration of domestic shale gas development. A) Mr. Liu, head of the national energy administration, chaired a meeting in Beijing on June 25, shale gas twelfth five-year development plan for the implementation of the meeting, the national policy is to support the matter energy structure adjustment of industry; B) the second round of bidding for shale gas in 2012 is expected to be conducted in July, and the bidding enterprises have greatly increased. There are now more than 70 enterprises expressing their intention, and the first bidding is only 6 state-owned enterprises. C) the national development and investment corporation signed a strategic cooperation framework agreement with chongqing municipality on June 26, and the state investment bank will invest 30 billion yuan to conduct shale gas exploration, development and utilization in chongqing. D) sinopec's first shale gas production capacity building project was launched in May this year, aiming to build a capacity of 1 billion cubic meters in fuling area of chongqing in 2013; E) as of March 22, petrochina's southwest oil and gas company had produced 5.8 million cubic meters of shale gas, and for the first time tested commercial water. Diamond bit supporting enterprises will benefit directly. Currently, about 60% of the global oil and gas production work is done by diamond bits. In exploration, the proportion of diamond drill bit is higher because of higher drilling rate. Therefore, the acceleration of capital expenditure for oil and gas exploration and exploration is directly positive for diamond drill bit and related supporting enterprises. Key material is PDC drill bit, related domestic listed companies is the quartet, the Yellow River cyclone, micro powder is the key to the production of composite materials, related domestic listed companies is a diamond. Combined with the current valuation level, it is highly recommended that the diamond and Yellow River cyclone be recommended. 1) and diamond single crystal, powder business this year will exceed market expectations, as the powder in super hard nature constantly infiltration and heat conduction performance of the application of expanding in the field of application, the future development space is very large; 2) in the second half of this year, the Yellow River cyclone will enter the production capacity release period of the additional project (pre-alloy bond project and mine composite project), which will inject new impetus into the company's growth. 3) sifang is the leading producer of the domestic polycrystalline composite film, and the market promotion of high-end petroleum composite films and large-size cutting tools and other products has been promoted steadily. By the closing price on June 27, the 2012 PE of the diamond and huanghe tornado was less than 20 times, highly recommended. Please refer to the relevant report for details of industry and company: "investment analysis report of diamond industry chain", "small powder, big world". Risk tip: the macro - economic growth rate fell more than expected.