Citigroup Maintains "Buy" Rating on KB LAMINATES, Sets HK$51 Price Target

Deep News05-15

Citigroup has issued a research report stating that China Jushi Co., Ltd. (600176.SH) has announced a significant investment plan to establish a production base in Huaian with an annual capacity of 50,000 tons of electronic glass fiber yarn and 320 million meters of electronic fabric. The bank believes that, given KB LAMINATES' (01888) stock price has already surged 256% year-to-date, this capacity expansion news may negatively impact its short-term market sentiment. Citigroup maintains a "Buy" rating on KB LAMINATES with a target price of HK$51.

However, the bank believes any subsequent stock price correction would present a favorable buying opportunity, as supply constraints in the electronic fabric industry remain limited by the slow growth in the number of looms. Citigroup expects KB LAMINATES' own monthly electronic fabric production capacity to increase by approximately 14% to 65 million meters by the end of 2026. Considering the constraints on loom supply, industry capacity growth is anticipated to remain limited over the next two years.

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