Kingboard Laminates Holdings Limited reported a sharp earnings expansion for the six months ended 30 June 2026, underpinned by strong demand for laminates and upstream materials used in artificial-intelligence (AI) applications.
Revenue and Profitability • Group revenue rose 55.50% year-on-year to HK$14.90 billion. • Gross profit climbed to HK$4.58 billion, lifting the gross margin to 30.73% from 18.39% a year earlier. • Profit attributable to shareholders surged 209.10% to HK$2.89 billion. • Basic earnings per share increased to HK$0.92 (1H25: HK$0.30). • EBITDA advanced 143.04% to HK$4.13 billion, while profit before tax tripled to HK$3.52 billion.
Segment Performance • Laminates division delivered revenue of HK$14.77 billion, up 55.53%, with segment results of HK$3.83 billion. Shipment volume grew 14%, supported by near-full-capacity operations. • Property division generated HK$48.64 million in revenue (+10.70%) and HK$19.75 million in segment profit. • Investment activities recorded a HK$191.42 million segment loss, driven by a HK$269.24 million fair-value decline in equity instruments.
Cash Flow and Balance Sheet • Net cash from operating activities reached HK$1.07 billion versus an outflow of HK$0.33 billion in 1H25. • Capital expenditure on property, plant and equipment totalled HK$1.14 billion, boosting non-current assets to HK$11.87 billion. • Net current assets stood at HK$8.16 billion, with a current ratio of 1.61. • Net gearing increased to 30% (31 Dec 2025: 16%) after higher borrowings to fund capacity expansion; total bank loans were HK$7.71 billion, 84% maturing within one year. • Cash and cash equivalents were HK$2.20 billion (31 Dec 2025: HK$1.63 billion). • Net asset value per share improved to HK$5.82, up 22% from year-end.
Dividend The Board declared an interim dividend of HK$0.28 per share (1H25: HK$0.15), payable on or about 5 January 2027 to shareholders on record as of 16 December 2026.
Operational Highlights • Tight global supply of electronic fibreglass yarn, fabric and copper foil, coupled with AI-related demand, supported multiple price increases during the period. • Four new specialty electronic fibreglass yarn kilns were commissioned, bringing the total to five, while vertical integration ensured timely delivery and cost efficiencies. • The electronic fibreglass yarn and fabric sub-segment generated approximately HK$1.00 billion profit, a 280% increase versus 1H25.
Investment Portfolio As of 30 June 2026, investments in equity and debt instruments totalled HK$3.21 billion, equal to about 10% of total assets. Dividend income from equities was HK$71.86 million; interest income from bonds reached HK$8.55 million.
Capital Commitments Contracted but unprovided capital expenditure amounted to HK$476.04 million, primarily for additional property, plant and equipment to expand AI-related production capacity.
Outlook Management expects the supply–demand imbalance in laminates and key upstream materials to persist through the second half of 2026, supported by accelerating AI commercialisation. Projects under construction include additional specialty electronic fibreglass yarn kilns, expanded electronic fibreglass fabric lines, and a 21,000-tonne high-performance copper-foil plant, aimed at reinforcing the Group’s position as a vertically integrated supplier to the AI materials market.
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