Metech International - UOB Kay Hian 2021-10-27: Sparkling Future With Lab-Grown Diamonds

METECH INTERNATIONAL LTD (SGX:V3M) | SGinvestors.io METECH INTERNATIONAL LTD (SGX:V3M)

Metech International - Sparkling Future With Lab-grown Diamonds

  • Metech International (SGX:V3M) recently established a Singapore JV company, Asian Eco Technology Pte. Ltd. (AET) to manufacture and distribute lab-grown diamonds, which are identical to a mined diamond, both chemically and physically.
  • AET has the technological capabilities to produce the highest grade of lab-grown diamonds that are used for jewellery. In addition, diamonds are also commonly used for industrial applications in medical equipment, aerospace, semiconductors, among others.



Strong market prospects in lab-grown diamonds driven by environmental, sustainability and ethical concerns of mined diamonds.

  • Diamonds are widely known to be used in jewellery but with its numerous physical attributes such as extremely high thermal conductivity, diamonds are also commonly used for industrial applications in medical equipment, aerospace, semiconductors, among others. A lab-grown diamond is chemically, physically and optically identical to a mined diamond, and is hence a sustainable source of this important raw material.
  • According to the latest annual report on the global diamond industry, prepared by the Antwerp World Diamond Centre (AWDC) and Bain & Company, lab-grown diamond production has ballooned in recent years, with 6m- 7m carats produced in 2020 alone, albeit still a tiny industry compared with diamond mining, which peaked at 152m carats in 2017 and currently stands around 111m carats.
  • The high level of thermal conductivity exhibited by diamonds makes them ideal for use in electronics to reduce the risk of overheating. They are also proving increasingly useful in radiation detection, with their radiation hardness and chemical stability allowing diamond-based detectors to be placed in previously inaccessible areas.


Increased adoption of lab-grown diamonds by big players.

  • Metech International (SGX:V3M)’s press release on 26 Sep 21 highlighted that the world’s largest diamonds to their product offerings, further positioning the category into the fashion jewellery segment and making it accessible to a wider range of price-sensitive consumers.


AET has the technological capability to produce jewellery-grade lab-grown diamonds

  • Metech International (SGX:V3M) recently established a Singapore JV company, Asian Eco Technology Pte. Ltd. (AET) to manufacture and distribute lab-grown diamonds. Only the 21 and the lab-grown diamonds will be produced on a bi-weekly basis.


Rapid progress with various strategic collaborations and agreements with established market players in the global diamond and jewellery industry.

  • AET has entered into various strategic collaborations, supply MOUs and distributorship with established market players in the global diamond and jewellery industry, which include
    • KDT Diamond (one of the largest diamond Selene Jewelry, India-based Lucinu Jewellery and India-based Maitri Diamonds.


Near-term key catalysts for Metech International:






Singapore Research Team UOB Kay Hian Research | https://research.uobkayhian.com/ 2021-10-27
SGX Stock Analyst Report NOT RATED MAINTAIN NOT RATED 99998 SAME 99998



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