EB SECURITIES has released a research report indicating that KB LAMINATES (01888) achieved a full-year 2025 revenue of HKD 20.40 billion, representing a year-on-year increase of 10.0%. Gross profit reached HKD 3.991 billion, up 21.7% compared to the previous year, resulting in a gross profit margin of 19.6%, an improvement of 1.9 percentage points. Net profit was HKD 2.442 billion, a substantial increase of 83.6% year-on-year, with the net profit margin rising to 12.0%, up 4.8 percentage points. Given the company's enhanced profitability resilience during a period of rising costs, expectations for continued price increases in its copper-clad laminate products to boost profits, and the potential growth avenue from high-end electronic glass fabric, EB SECURITIES has raised its forecast for attributable net profit for 2026 and 2027 by 28% and 26% to HKD 5.07 billion and HKD 6.08 billion, respectively. A new forecast for 2028 attributable net profit was set at HKD 6.71 billion. Based on the closing price on March 16, this corresponds to price-to-earnings ratios of 14x, 11x, and 10x for 2026, 2027, and 2028, respectively. The "Buy" rating is maintained.
The report notes that the company's full-year 2025 revenue from copper-clad panels, property, and investments was HKD 20.225 billion, HKD 78 million, and HKD 97 million, respectively, showing changes of +10.5%, -38.7%, and -11.4% year-on-year. Benefiting from strong demand for copper-clad laminates and upstream raw materials, the company achieved both volume and price increases for its products in 2025 compared to 2024. Profit from electronic glass yarn and glass fabric exceeded HKD 600 million in 2025, surging by 70% year-on-year. Furthermore, the company's 2025 results announcement stated that "currently, many copper-clad laminate companies are facing production impacts due to a shortage of electronic glass fabric, and the price of electronic glass fabric continues to climb." EB SECURITIES anticipates that profits from electronic glass yarn and fabric could see significant improvement in 2026.
Recently, leading copper-clad laminate companies globally have issued price increase notices. Resonac and Mitsubishi Gas Chemical have both announced price hikes for CCL and related products. On March 10, the KB Group issued a price adjustment notice, increasing the price of all panel materials, prepreg, and copper foil processing fees for all thickness specifications by 10% for orders received from that date onward.
The report points out that since 2025, CCL manufacturers, with KB LAMINATES as a representative, have implemented multiple rounds of price increases. This is primarily due to surging prices and tight supply for chemical products like epoxy resin and TBBA, continuously rising prices for electronic glass fabric, and high copper prices, all contributing to increased raw material and processing costs for copper-clad laminates. Additionally, KB LAMINATES demonstrates strong supply chain stability and cost control capabilities, with the thesis of "earnings resilience realization" gradually materializing. By establishing a comprehensive vertically integrated industrial chain that includes self-production of core raw materials like glass yarn, glass fabric, and copper foil, coupled with pricing advantages derived from a diversified downstream customer base, the company possesses robust supply chain stability and cost control. According to the company's 2025 results announcement, the group will add three new furnaces in the first half of 2026, each with an annual capacity of 500 tons for producing second-generation low-dielectric-constant and low-expansion-coefficient electronic glass yarn. Furthermore, new capacities for 70,000 tons of electronic glass yarn per year and 96 million meters of electronic glass fabric per year in Shaoguan, Guangdong, are expected to commence operations in the second half of 2026. EB SECURITIES believes the company's supply chain advantages support continuous and smooth price increases, which are expected to persistently enhance profit margins.
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