KB LAMINATES (01888) saw its shares rise more than 12%. At the time of writing, the stock was up 11.79%, trading at HK$22.1 with a turnover of HK$235 million. The catalyst for the movement was a new price hike notice issued by the company on April 3. As a leading producer of copper-clad laminates, KB LAMINATES announced a 10% price increase for all its board materials and prepreg (PP) products. The company cited sharply rising costs due to surging prices and tight supply of chemical products. This marks the third time since the beginning of the year that the company has raised its factory prices. Analysts from Everbright Securities previously highlighted that the company's well-established vertically integrated supply chain, which includes self-production of key raw materials like fiberglass yarn, fiberglass fabric, and copper foil, along with its pricing power derived from a diverse customer base, provides strong supply chain stability and cost control capabilities. The brokerage believes that the successive and smooth price hikes will directly boost the company's gross margin, with the thesis of "earnings flexibility realization" gradually materializing.
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