Citigroup has issued a research report stating that the share price of KB LAMINATES (HKEX: 01888) has fallen approximately 60% from its historical high this month. The stock is currently trading at a price-to-earnings ratio of only 8 to 9 times, which is even below its historical average (low double-digits), indicating an excessive decline.

The firm anticipates that KB LAMINATES will report a net profit for the first half of this year that is more than three times higher year-over-year, reaching HK$4 billion. Consequently, Citigroup has reaffirmed its 'Buy' rating on the stock, maintaining a target price of HK$130.

The bank participated in a post-earnings-forecast conference call for Nan Ya New Material (688519.SH). Key takeaways from the call included expectations that the average selling prices for copper-clad laminates (CCL) and electronic glass fabric will continue to rise in the second half of the year.

Additionally, the tight supply situation for electronic glass fiber fabric is projected to persist at least until the end of 2027. Furthermore, gross margins in the latter half of the year are anticipated to expand significantly compared to the first half.

Citigroup believes the insights from this conference call provide a positive signal for the copper-clad laminate industry, which includes companies like KB LAMINATES.