PCB Sector Stocks Defy Market Downtrend as Industry Sees Volume and Price Increases, with Q2 Outlook Brightening

Stock News05-20 10:00

PCB sector stocks are gaining against the broader market trend. At the time of writing, DELTON (01989) rose 6.76% to HKD 180; KB LAMINATES (01888) increased 4.87% to HKD 45.26; VGT (02476) was up 1.35% at HKD 376.2; and KINGBOARD HLDG (00148) gained 1.38% to HKD 55.25.

The industry has entered a price hike cycle this year, characterized by simultaneous increases in volume and price, full order books, and extended delivery times, indicating a high-growth phase. Since May, the sector has seen a new round of concentrated price increases. The costs of upstream raw materials such as copper-clad laminates, high-end copper foil, electronic glass fabric, and specialty resins have continued to rise, driving up the prices of finished PCB products. Among these, high-speed, high-frequency products for AI computing power have led the gains, with delivery times commonly extending to several months.

Analysis indicates that, based on April tracking, the PCB industry remains in a state of high year-on-year growth, driven by policy subsidies in automotive and industrial control sectors alongside the continuous large-scale rollout of AI applications. Industry chain monitoring suggests the first quarter maintained a high level of activity, and the second quarter is expected to see a further increase in this momentum. Price increases for mid-to-low-end raw materials and copper-clad laminates are projected to persist at least through June.

Recent geopolitical tensions have caused significant volatility in raw material prices and complicated macroeconomic expectations, though recent expectations have shown signs of stabilization. Close observation of these developments is advised.

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