Citigroup: KB LAMINATES (01888) stock price is under short-term pressure, target price is 14 Hong Kong dollars.

Citigroup released a research report stating that KB LAMINATES (01888) is expected to achieve only moderate growth in the first half of 2025, due to its high base and almost no AI business. The rating of "buy" is maintained with a target price of HKD 14, and it is expected that the stock price will undergo an adjustment. Regarding KB LAMINATES, the controlling shareholder KINGBOARD HLDG (00148) will sell up to 78.5 million shares of KB LAMINATES at a discounted price of HKD 10 per share, a discount of 7.75% compared to the previous day's closing price. After completion, KINGBOARD HLDG's stake in KB LAMINATES will decrease from 73.76% to 71.25%. The bank expects that the above transaction will put pressure on the stock price of KB LAMINATES in the short term. The bank pointed out that it has recently shifted its investment preference from KB LAMINATES to Shengyi Electronics (688183.SH), with KB LAMINATES being listed as the lowest priority. This is because Shengyi Electronics is relatively lagging behind and has a greater business exposure in the field of artificial intelligence. Citigroup expects that only the AI-related infrastructure sector will perform well, followed by the automotive industry. Other sectors such as communication equipment, home appliances, smartphones, industrial automation, etc. may face moderate declines to slight growth.