Stock Track | KB Laminates Soars 5.05% Intraday on Citigroup Target Price Hike and PPE Resin Supply Disruptions

Stock Track
06/16

KB Laminates' stock price surged 5.05% during intraday trading on Tuesday, marking a significant upward movement for the company.

The sharp rise follows Citigroup's decision to raise its target price for Kingboard Laminates from HKD 80 to HKD 100 while maintaining a Buy rating. The bank cited stronger-than-expected profitability in AI fiberglass cloth as a key factor and upgraded its earnings forecasts for the company by 7%-16% through fiscal year 2028.

Further supporting the move are ongoing supply disruptions in PPE resin, with approximately 70% of global high-purity PPE resin supply from Saudi Arabia's Jubail industrial zone remaining shut due to Middle East conflict. The company has implemented four rounds of price hikes year-to-date, with cumulative increases exceeding 40% for board materials. Additionally, CCL capacity growth of just over 20% significantly lags downstream PCB expansion, pointing to potential supply allocation shortfalls in the coming quarter.

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