KB LAMINATES (01888) rose more than 7% during the morning session, continuing to set new historical highs. At the time of writing, the stock was up 6.81%, trading at HK$35.44, with a turnover of HK$284 million.
The positive movement is driven by industry news. Major Taiwanese high-end CCL suppliers, including Taiwan Guangdian, Taiwan Yao, and Lianmao, have recently begun communicating price increases to their customers. This wave of price hikes has now extended to Taiwanese manufacturers, particularly for high-end materials. Notably, Japanese material manufacturers have also joined the trend. Resonac has announced a 30% price increase for copper clad laminates and prepreg effective March 1, while Panasonic Industry has also declared price adjustments.
Industry leaders such as KB LAMINATES, Jin'an, and Nan Ya have indicated that a new round of price increases for the second quarter has commenced. The average price is expected to rise by more than 20%, with the increases likely to persist until the end of May.
Citigroup released a research report stating that with the peak season approaching, it expects KB LAMINATES to implement average selling price hikes more frequently. The bank estimates that the average price of copper foil this year will increase by approximately 68% to 196 yuan per sheet, compared to 116 yuan last year. Citigroup has raised its profit forecasts for KB LAMINATES for fiscal years 2026 to 2028 by 18%, 23%, and 16% respectively. The target price has been lifted to HK$43, which implies a projected 2027 price-to-earnings ratio of 19 times.
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