Kingboard Holdings Ltd (SEHK: 00148) has issued a profit alert, announcing that the group expects to record a net profit exceeding HK$2.7 billion for the six months ending June 30, 2026. This represents an increase of more than approximately 4% compared to the same period in 2025.

The anticipated profit growth is primarily driven by a substantial surge in the reported segment profit from its copper-clad laminate (CCL) business, which is expected to rise by over 200% year-on-year. However, this gain will be partially offset by a reported loss from the group's investment operations during the period.

The market has experienced a sustained supply shortage for CCL and its upstream materials, including electronic glass fiber yarn, electronic glass fiber cloth, and copper foil. As a result, the average selling prices for these products have increased significantly. Additionally, CCL sales volumes have grown compared to the first half of 2025, contributing to the strong profit performance in the CCL segment. The company notes that the supply-demand imbalance for these materials has become even more acute in the current market.

The board of Kingboard Holdings believes the profit growth is also attributable to the group's robust and comprehensive vertical integration business model. While the investment segment posted a loss of approximately HK$500 million for the reporting period, the board notes that since the period's end, the stock market has recovered. As of the date of this announcement, the performance of the investment segment has rebounded to exceed the level recorded for the six months ended June 30, 2025 (which posted a profit of approximately HK$1.3 billion). This recovery, however, will not be reflected in the reported results for the current period.