HK Stock Market Move | KB LAMINATES (01888) fell more than 7% during intraday trading, as China Jushi Co., Ltd's expansion plans are impacting short-term sentiment. Citigroup indicates restrictions on the expansion rate of weaving machines.

KB LAMINATES (01888) falls more than 7% intraday, down 2.8% at the time of publication, trading at 41.72 Hong Kong dollars with a turnover of 965 million Hong Kong dollars. On the news front, global fiberglass leader China Jushi Co., Ltd recently announced that it will invest 4.431 billion yuan in Huai'an, Jiangsu, to build a production line with an annual capacity of 50,000 tons of electronic yarn and 320 million meters of electronic cloth. This is the company's second move in Huai'an base in 2026. In March of this year, a production line with an annual capacity of 100,000 tons of electronic grade fiberglass and 390 million meters of electronic cloth was just put into operation, ranking first in the world in terms of single-line production capacity. Citigroup has released a research report stating that due to the 256% increase in KB LAMINATES' stock price this year, the expansion news of China Jushi Co., Ltd may have a negative impact on its short-term market sentiment. However, a price correction will be a good entry opportunity as the supply bottleneck in the electronic fiber industry is still limited by the slow growth of weaving machine numbers. Citigroup predicts that the monthly production capacity of KB LAMINATES' electronic cloth will also increase by about 14% to 65 million meters by the end of 2026. Considering the supply constraints of weaving machines, the industry's supply growth for the next two years is expected to remain limited.