HK Stock Market Move | KB LAMINATES(01888) rose more than 6% in early trading with continued fermentation of demand for PCBs for servers. The company is the leader in the copper clad laminate industry.

KB LAMINATES (01888) rose over 6% in early trading, with a 6.44% increase reaching HK$7.11 by the time of writing, with a trading volume of HK$23.81 million. On the news front, Amazon's cloud computing division Amazon Web Services (AWS) plans to invest at least $11 billion in Georgia to expand its infrastructure and support various cloud computing and artificial intelligence technologies. Microsoft has previously stated that it will spend $80 billion on AI data centers by 2025, confirming the trend of high capital expenditure in the North American cloud industry by 2025. The CMB Electronics team pointed out that with the drive of AI technology and applications, servers will be the fastest growing application area for PCBs, with a projected CAGR of 11.6% to $14.2 billion by 2023-2028. It is reported that the PCB manufacturing process includes drilling, copper plating, printing, soldering, and other processing steps on the copper-clad laminate (CCL) to eventually form a circuit board. Open Source Securities previously mentioned that KB LAMINATES is a leading company in the CCL industry, and with the expected rise in copper prices by 2024 and gradual recovery in downstream demand, CCL boards have the potential for price adjustments, combined with cost advantages from vertical integration in the supply chain and economies of scale, which may drive the company's revenue and profit back to growth in 2024.