KB Laminates (01888) jumped more than 5% in Hong Kong trading, with shares last up 5.06% to HK$48.14 on turnover of HK$2.754 billion.

At the end of August, the company issued its seventh price increase notice this year to customers, raising prices on all thicknesses of FR-4 copper clad laminates (CCL) by 10% effective immediately. In addition, PP prepreg with 7628 fabric or thicker rose 10%, while thinner fabrics below 7628 increased by 20%. The company attributed the hike to tightening supply and soaring costs of core upstream materials such as glass fabric and copper foil.

Since March, KB Laminates has raised prices seven times. On a compound basis, cumulative increases for FR-4 CCL (above 1.3mm) have now exceeded 100%. The accelerating price momentum drove a substantial jump in first-half earnings, with revenue reaching HK$14.904 billion, up 55% year-on-year, while net profit attributable to shareholders surged 209% to HK$2.887 billion.

Citi Research expects KB Laminates to raise CCL prices again in early October to pass on rising costs. The brokerage reiterated a "Buy" rating with a target price of HK$95.