HK Stock Market Move | KB LAMINATES (01888) rises more than 6% due to increased demand for CCL, industry welcomes dual driving force of cyclical growth.

KB LAMINATES (01888) rose more than 6%, as of press time, up 6.17% to HK$7.23, with a turnover of HK$32.6912 million. On the news front, Sinolink recently pointed out that according to IDC's forecast, global shipments of smartphones, PCs, AR/VR, and wearable devices are all expected to grow next year, with a five-year compound annual growth rate reaching 3%, 1%, 27%, and 3% by 2028 respectively. Various consumer electronics products are expected to maintain year-on-year growth, with overseas cloud computing companies expected to increase their capital expenditures, contributing to incremental demand for CCL. The bank believes that it is currently a key investment moment for the PCB industry driven by cyclical and growth factors, and recommends focusing on strong alpha companies. In the first half of this year, KB LAMINATES achieved a turnover of approximately HK$8.638 billion, an increase of 7% year-on-year; the net profit attributable to shareholders was approximately HK$728 million, an increase of 72% year-on-year. Huatai Securities previously pointed out that the company is a leader in the PCB industry, with the expected rise in copper prices by 2024 and gradual recovery in downstream demand. PCBs have price adjustment flexibility, coupled with cost advantages from vertical integration in the supply chain and economies of scale, are expected to drive the company's revenue and profit back into growth in 2024.