KB LAMINATES shares tumbled 6.05% in early trading, extending a sharp reversal from last week’s post-earnings surge. The stock is now trading at levels well below the intraday high of HK$36.5 reached on July 31, after the company issued a positive profit alert.
The company had announced that first-half net profit is expected to exceed HK$2.8 billion, up over 200% year-over-year, driven by tight supply and rising prices for copper-clad laminates and key upstream materials. The initial rally, however, quickly faded as heavy selling by major shareholders overwhelmed the positive earnings momentum. Executive director Zhang Jiahao sold 1 million shares at HK$42.10 per share on July 20, and market sources indicate that large-scale disposals by insiders have totaled over HK$20 billion within a single month.
The persistent overhang from insider selling has kept the stock under pressure, with the failed rebound signaling that the positive earnings news was insufficient to offset the market’s concerns about the ongoing supply of shares from major holders.
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