Kingboard Laminates (01888) climbed more than 5% during intraday trading, though gains narrowed by the time of writing, with the stock up 2.50% at HK$49.20, on turnover of HK$2.295 billion. Market research indicates that in August, the dealer price for 7628 electronic fabric reached 15 yuan per meter, with a further 10-20% increase in September; the manufacturer's price for 7628 electronic fabric currently stands at 11-12 yuan per meter, marking three consecutive months of accelerating price hikes.

Guotai Haitong Securities noted that starting from the second quarter of this year, traditional electronic fabric and FR-4 copper clad laminates entered a faster price increase cycle, and the company, as a rare integrated player spanning from fabric to laminate production, is expected to see more pronounced leverage. Notably, since March this year, Kingboard Laminates has raised prices seven times, and on a compounded basis, the cumulative increase for FR-4 CCL (above 1.3mm) alone has exceeded 100%.

The accelerated price hikes in copper clad laminates have further driven a surge in corporate earnings. In the first half of this year, the company reported revenue of HK$14.904 billion, a year-on-year increase of 55%, with net profit attributable to shareholders reaching HK$2.887 billion, up 209% year-on-year. According to Citi's forecast, Kingboard Laminates is expected to raise CCL prices again in early October to pass on costs, leading the brokerage to reaffirm its 'Buy' rating with a target price of HK$95.