HK Stock Market Move | KB LAMINATES (01888) jumped over 7% breaking through the ceiling. The high-end product structure and price increase are expected to drive profit growth.

KB LAMINATES (01888) rose by over 7%, reaching a high of 16.99 Hong Kong dollars during trading, setting a new record high. As of the time of writing, it has risen by 7.35% to 16.8 Hong Kong dollars, with a trading volume of 5.71 billion Hong Kong dollars. On the news front, since the second half of last year, KB LAMINATES has raised prices in August, October, and early December, with two price increases in December. Citic Haitong pointed out that this indicates that the entire industry chain has entered a benign price increase cycle driven by AI prosperity. The company is also strategically laying out copper foils, electronic fabrics, and copper clad laminates, as the industry integration leader is expected to benefit from the price increase cycle across the entire chain. Looking ahead to 2026, the company's high-end product structure and industry chain price increases are expected to jointly drive the company's profit center upwards. Citigroup expects that KB LAMINATES' core profit growth will significantly accelerate during the upward cycle of copper prices. Its growth rate is expected to increase from a year-on-year 10% in the first half of 2025 to around 58% in the second half, and further achieve a 57% growth in 2026. This forecast does not yet take into account the potential contribution of the company's AI glass fiber business. The report believes that due to the high concentration of the copper clad laminate industry, leading companies with technological and cost advantages have the ability to transmit the pressure of raw material price increases to downstream PCB customers.