KB Laminates' stock price soared 8.70% during intraday trading on Thursday, reflecting strong investor sentiment toward the company.
The sharp rise follows the company's recent formal price increase notice, which raised all board material and prepreg (PP) prices by 10%. This move is primarily driven by elevated copper prices and tight glass cloth supply, both of which have caused a significant increase in production costs.
Additionally, ongoing AI computing cluster construction continues to push printed circuit board (PCB) demand higher, which in turn boosts demand for copper clad laminate (CCL). As an industry leader with strong pricing power, KB Laminates is well-positioned to benefit from this cyclical uptrend. Citi has raised its earnings forecasts for the company and lifted its target price to HK$43, while industry analysts expect CCL supply-demand tightness to persist through 2027 or longer due to the AI super-cycle.
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