Kingboard Laminates Shares Gain Over 4% on Seventh Price Hike This Year

Shares of Kingboard Laminates Holdings Ltd. (01888.HK) surged more than 4% after the company announced another round of price increases, its seventh this year. The move, coupled with a bullish analyst outlook, signals continued pricing power amid tight market conditions.

Details of the Price Increase

Kingboard's stock price rose by 4.2% to HK$45.64, with a trading turnover of HK$1.888 billion. The rally follows a notice issued by the company late last month detailing significant price adjustments for its copper-clad laminates and electronic-grade glass fabric products.

Key adjustments include:

• A uniform 10% price increase for all thicknesses of FR-4 copper-clad laminates.
• A 10% increase for thicker glass fabric (7628 and above).
• A 20% increase for thinner glass fabric (below 7628).

Analyst Commentary and Financial Impact

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Analysts at Citigroup expect the trend to continue, forecasting that Kingboard will implement another price hike for copper-clad laminates in early October to pass on rising costs. The bank reaffirmed its "Buy" rating on the stock with a price target of HK$95.

The strategy of raising prices has already had a significant positive effect on the company's financial performance. For the first half of the year, Kingboard reported a 55% year-over-year increase in revenue to HK$14.904 billion, while net profit attributable to shareholders soared 209% to HK$2.887 billion. The company also achieved a record single-month profit of approximately HK$1.1 billion in July.

Market Outlook

Kingboard's management stated that the tight supply-demand imbalance in the copper-clad laminate industry is unlikely to ease in the short term. The company anticipates that the sector will remain in a sustained upward cycle, supporting the continued strong performance.