Shares of KB LAMINATES (SEHK: 01888) surged more than 9% during morning trading. At the time of writing, the stock was up 9.04%, trading at HK$87.45 with a turnover of HK$3.662 billion.

Analyst Raises Forecast and Target

Citigroup has issued a research report, raising its profit forecasts for KB LAMINATES for the years 2026 to 2028 by 7% to 16%. The bank also increased its target price for the stock from HK$80 to HK$100. This adjustment is attributed to the stronger-than-anticipated profitability of its AI glass fiber fabric products. Over the past four months, Citigroup has raised its target price multiple times, starting from HK$20.5. The company's share price has increased fivefold year-to-date, which the bank believes is driven by a sharp rise in the average selling prices of electronic glass fiber fabric and copper-clad laminates, leading to improved profit and growth expectations.

Supply Constraints Supporting Prices

The report notes that, following a meeting with a leading Chinese AI glass fiber fabric producer, Honghe Electronic Materials, it was observed that due to limited supply of looms, the average selling price for electronic glass fiber fabric is expected to continue rising in the second half of 2026. The higher-than-expected profitability of AI glass fiber fabric was also highlighted as a positive indicator for KB LAMINATES.