HK Stock Market Move | KB LAMINATES (01888) rose over 8% as AI demand drives tight supply of copper-clad laminates and upstream raw materials. Citigroup anticipates a new wave of price increases in August.

KB LAMINATES (01888) rose more than 8%, reaching an increase of 8.41% to HKD 37.9 as of press time, with a trading volume of HKD 2.467 billion. On the news front, KB LAMINATES previously expected a net profit of over HKD 2.8 billion for the first half of the year, representing a year-on-year increase of more than 200%. This is mainly due to the sustained supply shortages in the market for copper-clad laminates and their upstream materials, leading to a significant general increase in product prices, as well as a year-on-year growth in the sales volume of copper-clad laminates. According to Citibank's research report, the monthly average price of the 1080, 2116, and 7628 series of electronic fabrics rose by 17% to 18% in August, with a cumulative year-to-date increase of 118% to 165%; KB LAMINATES plans to raise the CCL's inclusive tax spot price by 10% to 15% again in August. UBS pointed out that the demand for AI is driving tighter supplies of copper-clad laminates and upstream raw materials, making KB LAMINATES, as the world's largest traditional FR4 copper-clad laminate supplier, a major beneficiary. The report stated that even if the current cycle of rising traditional copper-clad laminates comes to an end, the companys profits are not expected to decline as they have in past cycles, because the companys expansion into AI-related upstream materials and copper-clad laminate business will bring new structural growth momentum, with its vertically integrated business model also being a key differentiating advantage.