HK Stock Market Move | Price surge of upstream copper clad laminates on PCB is back again. KB LAMINATES (01888) has surged over 5% while KINGBOARD HLDG (00148) has risen nearly 4%.

The morning session of Jian Tao Group saw a general rise in stock prices. As of the time of writing, KB LAMINATES (01888) rose by 5.57% to HK$23.5, while KINGBOARD HLDG (00148) rose by 3.7% to HK$39.2. On the news front, since April, due to increased downstream demand and rising raw material prices, companies like KB LAMINATES have started a new round of price hikes. According to media reports, following the announcement of a more than 30% price increase in copper foil substrates and adhesive films by Japanese semiconductor materials giant Resonac, Mitsubishi Gas Chemical also announced a 30% price increase for a full range of high-end PCB materials including copper-clad laminates and copper foil resin sheets starting from April 1. Jian Tao has also recently raised prices by 10% for all board materials and PP (semi-cured sheets). Sinolink points out that given the full capacity of TSMC, accelerated expansion, and rising GPU leasing prices, the short-term and medium-term demand for AI is very strong. We believe that the strong demand for AI will drive the simultaneous increase in PCB prices and volume. Currently, many AI-PCB companies have strong orders, full production and sales, and are vigorously expanding production, with high growth prospects for performance. Demand for AI copper clad laminates is also strong, and as overseas production of copper clad laminates is slow to expand, leading mainland manufacturers of copper clad laminates are expected to benefit positively.