Citigroup Raises KB LAMINATES (01888) Target Price to HK$30, Foresees AI Fiber Shortage Benefits

Stock News03-17 11:48

Citigroup has issued a research report indicating an upgrade to the earnings per share forecast for KB LAMINATES (01888) by 7% to 11% for 2026 and 2027. This revision accounts for the company's AI fiber and electronic glass fiber operations, with an anticipated compound annual growth rate of 46% in profits from 2026 to 2028. The target price has been increased from HK$28 to HK$30, representing a projected price-to-earnings ratio of 25 to 26 times for the current year, alongside a "Buy" rating. The report noted that KB LAMINATES' gross profit margin expanded from 17.7% in 2024 to 19.6% in 2025, slightly below expectations. However, the company declared a final dividend and a special dividend, resulting in a full-year payout ratio of 87%, significantly higher than the expected 50%. It is anticipated that the company stands to benefit from the severe shortage of AI fiber amid the current investment surge in AI servers.

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