KB LAMINATES (01888) rose more than 5% again. As of the time of writing, the stock was up 4.23%, trading at HK$14.05 with a turnover of HK$315 million. On the news front, on December 26, KB issued a price increase notice. Due to the recent surge in copper prices and tight supply of glass cloth, the company was forced by cost pressures to raise prices for all materials by 10%. Cathay Haitong Securities indicated that since the second half of 2025, the company has already implemented price hikes three times at the beginning of August, October, and December. Another increase in December, making it twice within the month, has exceeded expectations. This signifies that, driven by the AI boom, the entire industry chain has entered a virtuous cycle of price increases. The company is simultaneously involved in copper foil, electronic cloth, and copper-clad laminates (CCL). As an integrated industry leader, it is well-positioned to benefit across all segments from this rising price cycle. Guojin Securities released a research report stating that strong AI demand is driving both prices and volumes for PCBs higher. Currently, many AI-PCB companies are reporting robust orders, operating at full capacity with sold-out production, and are actively expanding. High performance growth is expected to continue into the fourth quarter and next year. Demand for AI-related CCL is also robust. Given the slow capacity expansion of overseas CCL manufacturers, leading mainland CCL producers are expected to benefit significantly.
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