HK Stock Market Move | KB LAMINATES (01888) increases by over 4% again. The company's copper-clad laminates have strong bargaining power and deep layout in the upstream raw material of the industry chain.

KB LAMINATES (01888) continued to rise by over 4%, rising by 4.53% to HK$19.66 at the time of writing, with a trading volume of HK$217 million. EB SECURITIES released a research report stating that KB LAMINATES' copper-clad laminates have strong bargaining power and cost transmission ability, with tight supply and rising copper prices benefiting prices and profits during the upswing cycle. The company's downstream customers are diversified, with the top five customers accounting for less than 30% of sales in 2024, and about 78% of revenue coming from non-related third-party markets, giving them strong bargaining power and cost transmission ability. The bank believes that the current tight supply in the copper-clad laminate industry, coupled with the upward cycle of copper prices, is expected to drive both prices and profits. The bank also pointed out that the company has deepened its layout in the upstream raw materials of copper-clad laminates, expanding production capacity in Guangdong in 2025 to ease production bottlenecks, and starting full production at a new copper foil production capacity of 1,500 tons per month in Lianzhou, Guangdong to meet the increased demand for thick copper foils brought by data centers and cloud computing. Vertical integration of the production chain helps to reduce the risk of price fluctuations in upstream raw materials, and the high value-added low dielectric glass fiber yarn is expected to open up growth opportunities for the company.