Shares of KB Laminates (01888) extended their rally, jumping more than 10% in morning trading. As of the time of writing, the stock was up 10.59% at HK$51.05, with turnover reaching HK$6.099 billion.
On the news front, Morgan Stanley's latest report projects that the global total addressable market (TAM) for copper-clad laminates (CCL) will grow from US$19 billion in 2025 to US$47 billion by 2030, representing a compound annual growth rate of 20%—significantly exceeding the market's general expectation of US$35 billion to US$40 billion. AI and data center applications are expected to contribute 90% of this incremental growth.
Additionally, JPMorgan initiated coverage on the company with an "Overweight" rating and a target price of HK$65, implying approximately 41% upside from Tuesday's closing price. Notably, a HKEX disclosure filing showed that the KB Group increased its stake in KB Laminates by 800,000 shares on September 21, at an average price of approximately HK$46.80 per share, totaling around HK$37.5 million.
Since March this year, KB Laminates has raised prices seven times. On a compound basis, cumulative price increases for FR-4 CCL (above 1.3mm thickness) have already exceeded 100%. The accelerated price hikes have further driven the company's earnings growth, with net profit attributable to shareholders reaching HK$2.887 billion in the first half of this year, up 209% year-on-year.
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