KB Laminates' stock price soared 5.05% during intraday trading on Friday, reflecting strong investor confidence in the company's prospects.
The surge is attributed to a significant supply-demand imbalance in the copper-clad laminate (CCL) industry, with delivery cycles extending from the normal two weeks to as long as six weeks. KB Laminates recently issued a formal price increase notice, raising all board material and prepreg prices by 10% due to sharply rising costs from elevated copper prices and glass cloth supply shortages.
Furthermore, the AI-driven super cycle continues to propel PCB demand growth, which in turn boosts consumption of CCL. Analysts, including those from Citigroup, have raised earnings forecasts for the company, anticipating that the tight supply-demand situation in the CCL market is likely to persist through 2027 or beyond, supporting sustained industry growth.
Comments