Shares within the Kingboard group are exhibiting notable strength in today's trading session.
As of the latest update, KB LAMINATES (SEHK: 01888) has surged by 11.48%, trading at HK$55.65, while KINGBOARD HOLDINGS (SEHK: 00148) has advanced by 9.3%, reaching HK$68.15.
Recent Developments and Market Drivers
The price movement follows an announcement from KB Laminates on May 27th, where the company issued another price increase notice, raising the prices of its board materials and PP products effective immediately. The board material series saw a 10% increase across all thicknesses, and PP products were raised by 20%, marking the fourth price hike for its products this year.
Supply chain research indicates that the printed circuit board (PCB) cost for NVIDIA's VR200 has experienced a massive increase of over 233% compared to the GB300 model. This surge is expected to elevate the total PCB consumption value to approximately US$117,000, a significant jump from the US$35,000 for GB300.
Analyst Perspectives
In a recent research note, analysts highlighted that due to higher-than-anticipated inflation in electronic glass fabric prices, they maintain a preference for KB Laminates over its parent company, Kingboard Holdings. This preference is based on the laminate subsidiary's stronger potential for upward earnings revisions.
The analysis suggests that the sharper-than-expected rise in electronic glass fabric prices is likely to translate into higher average selling price inflation for copper-clad laminate (CCL) products swiftly, potentially as early as the end of this month. The increase in CCL prices is primarily cost-driven, with key cost components including copper, electronic glass fabric, and epoxy resin.
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