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KINGBOARD HLDG (00148.HK) Up Over 2% as Citi Raises TP to HKD90; Recommends KB LAMINATES (01888.HK)
Recommend 19 Positive 45 Negative 24 |
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KINGBOARD HLDG (00148.HK) is currently reported at HKD64.2, up 2.31%, with 9.1336 million shares traded, involving HKD582 million. KB LAMINATES (01888.HK) opened 2.21% lower today, hitting a trough of HKD51.85. It is now reported at HKD53.9, down 0.65%, with 18.6629 million shares traded, involving HKD996 million. Citi said in a report that due to stronger-than-expected price inflation of electronic glass fiber cloth recently, it continues to prefer KB LAMINATES (01888.HK) over KINGBOARD HLDG (00148.HK), as it sees greater earnings upgrade potential for the former. Data show that the average selling price of electronic glass fiber cloth has risen by 60% to 95% since the beginning of the year. Citi noted that the MoM increase in electronic glass fiber cloth prices accelerated in June, with the average selling price per meter rising by RMB0.70 to RMB0.95, compared with an increase of RMB0.55 to RMB0.75 per meter in May. The strong price inflation since the beginning of the year reflects reduced overall industry supply, as major suppliers such as China Jushi and KB LAMINATES require time to ramp up new capacity, face loom capacity bottlenecks, and some peers have shifted production to higher-margin AI-related fabrics. The broker believes that the stronger-than-expected increase in electronic glass fiber cloth prices will soon (as early as by the end of this month) translate into average selling price inflation for copper clad laminates (CCL). The increase in CCL prices is mainly cost-driven, with key cost components including copper, electronic glass fiber cloth and epoxy resin. The company has raised CCL prices from about RMB150 to RMB160 per sheet at the end of 2025 to RMB180 to RMB190 per sheet currently. The broker forecasts that the annual average selling price of CCL in 2026 will surge nearly 76% YoY to RMB220 per sheet, and expects spot prices to rise by a further 30% in 2H26, reaching RMB240 per sheet by year-end. Based on a sum-of-the-parts (SOTP) valuation, Citi raised its TP for KINGBOARD HLDG from HKD65 to HKD90, implying a projected 2027 price-to-earnings ratio of about 10x, and maintained a Buy rating. (su/a) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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