KB LAMINATES (01888) Rises Over 4% Again on Strong Pricing Power and Upstream Integration

Stock News
Feb 12

KB LAMINATES (01888) has climbed more than 4% again. As of writing, the stock was up 4.53% to HK$19.66, with a turnover of HK$217 million. An analysis report highlighted that KB LAMINATES possesses strong pricing power and cost-pass-through capabilities for its copper-clad laminates. Tight supply conditions coupled with an upward trend in copper prices are seen as beneficial for both pricing and profitability. The company's customer base is diversified, with its top five clients accounting for less than 30% of total sales in 2024. Approximately 78% of its revenue comes from third-party market transactions, underscoring its robust bargaining power and ability to transfer costs. The report suggests that the current tight supply in the copper-clad laminate industry, combined with the rising copper price cycle, is expected to drive increases in both product prices and profit margins. Furthermore, the company has a deep strategic presence in upstream raw materials for laminates. By 2025, it plans to continue expanding production of low-dielectric glass fiber yarn in Guangdong to alleviate capacity constraints, catering to demand from high-end communication sectors such as 5G, 6G, and AI servers. Additionally, its newly operational copper foil facility in Lianzhou, Guangdong, with a monthly output of 1,500 tons, directly addresses the surging demand for thick copper foil driven by data centers and cloud computing. This vertical integration across the industrial chain helps mitigate risks from fluctuations in upstream raw material prices, while high-value-added low-dielectric glass fiber yarn is poised to unlock new growth opportunities for the company.

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