KB LAMINATES (01888) shares plummeted 5.06% during intraday trading on Friday, extending a prolonged downtrend that has seen the stock lose over 60% of its value from its historical high near HK$107.

The latest sell-off was triggered by a disclosure from the Hong Kong Stock Exchange revealing that Executive Director Zhang Jiahao sold 1 million shares on July 20 at an average price of HK$42.10 per share, involving approximately HK$42.1 million. The transaction reduced his shareholding ratio from 0.09% to 0.06%. This sale adds to a pattern of intensive insider selling in recent weeks, with major shareholder Hallgain Management Limited and multiple directors having continuously reduced their holdings, compounding the negative sentiment surrounding the stock.

Despite the sustained decline, Citi recently reiterated its "Buy" rating on KB LAMINATES with a target price of HK$130, arguing the sell-off has been excessive and that the stock's current valuation at 8 to 9 times earnings is below its historical average. The bank expects the company's first-half net profit to more than triple year-on-year to HK$4 billion, driven by continued increases in copper-clad laminate (CCL) average selling prices.