Citigroup: Raises KB LAMINATES (01888) target price to 28 Hong Kong dollars, exceeding expectations.

Citigroup released a research report stating that KB LAMINATES (01888) has announced a positive profit forecast for last year, with an expected net profit growth of over 80% to more than 2.39 billion yuan, surpassing the bank's forecast of 21.4 billion yuan. Therefore, the bank has raised its profit forecast for KB LAMINATES in 2025, 2026 and 2027 by 8%, 6% and 8% respectively, and has raised its target price from HK$20.5 to HK$28. The stock has risen more than 50% since the beginning of the year, and Citigroup believes that this should already largely reflect the positive profit forecast. The bank stated that if the stock price declines, it would be a better buying opportunity, and they prefer KB LAMINATES over KINGBOARD HLDG (00148). The bank believes that the key catalysts for KB LAMINATES include: 1) Expectations that the average selling price will continue to rise in the first half of this year to catch up with recent copper cost inflation; 2) After the 2025 performance announcement, the management will provide more positive information on the development of AI glass fabric.