Movement Alert|Kingboard Laminates Rises 3.48% in Regular Trading, CCL Supply-Demand Tightness Persists as Stock Rebounds from Multi-Day Pullback

Market Focus05-20 09:50

On May 20, Kingboard Laminates rose 3.48% in regular trading, trading at 45.64 HKD/share, with trading volume of 338 million HKD, rebounding after multiple consecutive sessions of decline.

On the news front, the copper clad laminate (CCL) industry continues to experience tight supply-demand conditions. Korean PCB manufacturers reportedly placed extraordinary pre-purchase orders with Chinese CCL suppliers amid supply disruption concerns, with delivery cycles for certain high-end products extending beyond six weeks. The company previously announced two rounds of 10% price increases across all CCL products within April, resulting in a cumulative increase exceeding 40%, demonstrating strong cost pass-through capability.

Citi maintains a Buy rating on the stock with a target price of 51 HKD, noting that weaving loom supply constraints will limit industry capacity growth over the next two years. Parent company Kingboard Holdings also gained 2.2% on the day, indicating recovering sector sentiment following the prior week's correction triggered by China Jushi's capacity expansion announcement.

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