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KINGBOARD HLDG (00148.HK) Once Soars 20% to Record High as Citi Lifts TP to HKD202
2026-06-22 11:04:13 KINGBOARD HLDG (00148.HK) opened 4.66% higher today (22nd) and once surged 19.9% to a record high of HKD151.8. It is now trading at HKD137, up 8.21%, with turnover of 32.9413 million shares, involving HKD4.648 billion. KB LAMINATES (01888.HK) opened 1.91% higher today and once rose 8.5% to a record high of HKD99.65 before reversing lower. It is now trading at HKD90.15, down 1.85%, with turnover of 49.3845 million shares, involving HKD4.638 billion. Citi published a research report initiating a 30-day positive catalyst watch on KINGBOARD HLDG. The bank said it has frequently raised its earnings forecasts for the group癒礎s 62%-owned subsidiary KB LAMINATES, mainly due to higher-than-expected average selling price assumptions for copper clad laminates (CCL) and electronic glass fiber cloth. This is sufficient to fully offset the impact of the recent placement by KB LAMINATES, which reduced KINGBOARD HLDG癒礎s stake from 67% to 62%. Citi expects KINGBOARD HLDG to structurally transform in the AI era into an almost pure-play printed circuit board (PCB) and CCL company. The contribution of these two segments to total net profit is projected to surge from 63% in 2025 to 87% in 2028. The bank expects KINGBOARD HLDG may issue a strong profit alert for 1H26 next month and forecasts its 1H26 net profit to grow 55.6% YoY to HKD4.016 billion, with revenue rising 33% YoY to HKD28.739 billion. Net profit growth in 2H26 is expected to accelerate to 175% YoY to nearly HKD5.01 billion. Key growth drivers include: a 3x YoY surge in net profit of subsidiary KB LAMINATES, becoming the largest profit contributor to KINGBOARD HLDG this year; market share gains in the PCB business driven by vertical integration advantages (securing upstream supply amid the current CCL shortage), supporting EBIT margin expansion; and margin expansion in the chemicals business, supported by the spike in oil prices in 2Q triggered by the US-Iran conflict. In addition, following the placement of KB LAMINATES shares on June 16, cash per share will increase by HKD10.6, while net gearing is expected to decline from 28% in 2025 to 15% in 2026. This will help partly support its annual capital expenditure plan of over HKD6 billion during 2026-2027. Citi raised its earnings forecasts for KINGBOARD HLDG for 2026-2028 by 16% to 28%, reiterated its Buy rating, and sharply lifted its SOTP-based TP from HKD89.6 to HKD202 to reflect the earnings upgrades. The holding company discount assumption was also narrowed from the previous 45%-50% to 20%. (ad/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |