KB LAMINATES (SEHK: 01888) saw its shares climb more than 5% during the trading session. At the time of writing, the stock was up 3.93%, trading at HK$72.75 with a turnover of HK$2.525 billion.

On July 6th, the leading copper-clad laminate manufacturer issued another price increase notice. Due to persistently strong market demand, the supply of key upstream materials like glass fabric and copper has become increasingly tight, leading to significant price hikes. The company announced a 15% price increase for all FR-4 and PP products, a 10% increase for CEM-1/22F products, and raised copper foil processing fees by RMB 5 per kilogram for products under 1.5oz and RMB 8 per kilogram for products over 2oz.

Citigroup published a report noting the company has begun raising prices for its value-added copper foil profits, with increases of RMB 5 per kg for 1.5oz foil and RMB 8 per kg for 2oz foil, equating to a price rise of over 25%. As the magnitude of the price increase exceeded expectations, the bank raised its earnings per share forecasts for 2026-2028 by 11-12%. It subsequently lifted its target price from HK$120 to HK$130, maintaining a "Buy" rating. The bank views any share price pullbacks as buying opportunities, with upcoming catalysts including a forecast for first-half results and potential upgrades to market expectations following the earnings release.