KB Laminates (01888) plummeted 5.13% during intraday trading, as heavy selling pressure from major shareholders continued to weigh on the stock.
The decline came despite the company recently issuing a positive profit alert, forecasting first-half net profit to exceed HKD 2.8 billion — a year-on-year surge of over 200% — driven by tight supply and rising prices in copper-clad laminates and upstream materials. However, major shareholders have cumulatively sold shares worth over HKD 20 billion so far this year, with multiple directors conducting intensive disposals at elevated price levels in June and July. The massive selling volumes have created persistent capital-flow headwinds that continue to suppress the share price, offsetting the fundamental positives.
The company is scheduled to release its formal interim results and dividend details on August 24. Citigroup recently reiterated a Buy rating with a target price of HKD 130, viewing the decline as excessive. Nonetheless, subsequent major shareholder disposal activity remains the core risk factor for the stock.
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