Circuit board and copper clad laminate (CCL) stocks are leading gains in Hong Kong trading, driven by strong first-half earnings reports and expectations of continued growth through the second half of the year.
As of the latest update, KB LAMINATES (01888) jumped 6.06% to HK$40.94, while KINGBOARD HLDG (00148) rose 5.87% to HK$50.65. HANS CNC (03200) gained 2.55% to HK$112.40, and VGT (02476) advanced 2.24% to HK$246.40.
Market catalyst and company clarification
Market rumors recently circulated that electronics materials leader Nanya planned to raise prices for substrates and base materials by 20% each starting September 1, citing sustained increases in raw material costs such as copper foil, fiberglass cloth, and resin. The company reportedly stated it had absorbed costs as much as possible but needed to adjust pricing due to the magnitude of the increases.
However, Nanya responded clearly that it is not implementing a blanket, one-time 20% price increase for all customers. Instead, the company is negotiating terms with individual clients on a case-by-case basis, noting it is "less likely to announce price hikes unilaterally via formal letters."
Analyst outlook and sector performance
CITIC Securities released a research report highlighting that recent earnings forecasts from PCB and CCL companies have been impressive. In the PCB segment, companies with high exposure to artificial intelligence have maintained strong earnings growth, delivering standout results. For the CCL segment, price increases have accelerated profitability recovery, with earnings generally surpassing expectations.
Looking ahead to the second half of 2026, the brokerage sees stronger growth momentum in the PCB sector, driven by new production capacity for AI and accelerated customer orders. CITIC is optimistic about continued earnings acceleration for PCB companies. In the CCL segment, the brokerage expects price increases to be implemented quickly in the near term, with growing certainty that prices will remain elevated over the medium to long term. The firm continues to recommend the sector for investment opportunities.