KB LAMINATES (01888) Surges Over 7% to Record High on Premium Product Mix and Price Hikes

Stock News
Feb 10

KB LAMINATES (01888) rose more than 7% again, reaching an intraday high of HK$16.99, setting a new record. As of the time of writing, the stock was up 7.35% to HK$16.8, with a turnover of HK$571 million. Since the second half of last year, KB LAMINATES has implemented price increases at the beginning of August, October, and December, with two hikes occurring in December. Guotai Haitong Securities indicated that this suggests the entire industry chain has entered a positive price hike cycle, driven by AI sector prosperity. The company is concurrently involved in copper foil, electronic glass fabric, and copper-clad laminates. As an integrated industry leader, it is well-positioned to benefit across all segments from this rising price cycle. Looking ahead to 2026, the company's shift towards a more premium product mix, combined with industry-wide price increases, is expected to jointly drive an uplift in its profit margin. Citigroup anticipates that KB LAMINATES' core profit growth will accelerate significantly during the upward cycle in copper prices. Its growth rate is projected to jump from 10% year-on-year in the first half of 2025 to approximately 58% in the second half, followed by a further 57% growth in 2026. This forecast does not yet include potential contributions from the company's AI glass fiber business. The report suggests that due to the high concentration within the copper-clad laminate industry, leading companies possess the technological and cost advantages necessary to pass on rising raw material costs to their downstream printed circuit board customers.

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