Citigroup: KB LAMINATES (01888) Stock Price Under Excessive Pressure, Reiterates "Buy" Rating

Citibank released a research report stating that the stock price of KB LAMINATES (01888) has dropped by about 60% from its historical high this month, with the current P/E ratio only 8 to 9 times, even lower than the historical average (low double digits), indicating that the decline is obviously excessive. The bank predicts that KB LAMINATES' net profit in the first half of this year will increase by more than 3 times to HK$4 billion, reaffirming its "buy" rating and maintaining a target price of HK$130. The bank participated in a conference call after Nanya New Material Technology (688519.SH) released its half-year performance forecast with key information including expectations that the average selling prices of copper-clad laminates (CCL) and electronic glass fabric will continue to rise in the second half of the year, the tight supply of electronic glass fiber fabrics will continue at least until the end of 2027, and gross profit margin in the second half of the year will significantly expand compared to the first half. The bank believes that this conference call provides positive insights for the copper-clad laminate industry, including KB LAMINATES.