Citi has raised its target price for Kingboard Laminates Holdings Ltd to HK$95, following the company's announcement of a 209% year-on-year surge in first-half net profit attributable to shareholders.

Analysts led by Eric Lau noted that July's earnings were slightly stronger than anticipated, prompting the firm to lift its 2026-2028 profit forecasts by 9% to 10% and revise the target price upward.

In terms of valuation, the stock trades at a projected 2027 price-to-earnings ratio of just 7.7 times, while earnings per share are expected to grow at a compound annual rate of 94% over the next three years.

The company's projected EBITDA is set to expand 2.2-fold to HK$12.97 billion, which should be sufficient to cover a dividend payout ratio exceeding 50% for the full year while also meeting the increased capital expenditure needs of HK$4 billion this year.

In response to rising costs for electronic-grade fiberglass cloth in early August, Kingboard Laminates raised the blended average selling price of its copper-clad laminates by 10% last week. The brokerage expects further price increases of 15% to 20% by the end of this year.

The company plans to add eight new furnaces by 2028, bringing its total to 13, with two furnaces expected to begin operations in the second half of 2026. This expansion will boost annual production capacity for specialty electronic fiberglass cloth to 100 million meters by 2028.