Citigroup: KB LAMINATES (01888) AI fiberglass cloth profitability stronger than expected, target price raised to HKD 100

Citi released a research report stating that it has raised its profit forecast for KB LAMINATES (01888) for the years 2026-2028 by 7-16%, with the target price raised from HK$80 to HK$100, to reflect the stronger-than-expected profit capability of AI fiberglass cloth. Citi has raised the target price multiple times in the past four months, starting from HK$20.5, and the company's stock price has also increased fivefold since the beginning of the year. The bank believes that this is driven by the sharp increase in the average selling price of electronic fiberglass cloth and copper clad laminate, which has improved its profit and growth expectations. Citi pointed out that after meeting with China's leading AI fiberglass cloth industry leader Macro Electronic Materials, it found that due to limited supply of weaving machines, the average selling price of electronic fiberglass cloth will continue to rise in the second half of 2026, and the higher-than-expected profit capability of AI fiberglass cloth are all insights for KB LAMINATES.