KB LAMINATES (HKEX: 01888) saw its share price plummet by 5.27% during the morning trading session on Monday, marking a significant downward movement for the stock.

The sharp decline comes as Citi analysts noted that Kingboard Laminates' stock had fallen 19% from its end-June peaks, partly due to a major stakeholder disposing of a stake. Investor concerns around a possible overbuild of artificial-intelligence infrastructure also likely weighed on the stock, as both Kingboard Laminates and its parent company are involved in manufacturing AI hardware.

Despite the recent sell-off, Citi analysts believe the share decline is "almost done" and that both companies are likely to issue profit alerts beating estimates around end-July. The analysts reiterated their buy rating, noting both stocks have relatively lower valuations than other Hong Kong-listed AI hardware stocks.