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2026-08-13 16:38:23 Citi issued a report stating that KB LAMINATES (01888.HK) has plunged by more than 60% from its June peak. The broker believes now is a good opportunity to re-enter the stock and expects earnings growth to accelerate in 2H26. The broker forecast the company's net profit for 2H26 to surge 2.8x YoY, compared with an approximately 2x YoY increase in 1H26. The broker said it identified three major positive catalysts for the company, including (1) after cost inflation in electronic glass fiber cloth since early August, the average selling price inflation for copper clad laminate (CCL) products in August is expected to range from 10% to 15%; (2) after the company announces its results on 24 Aug, market focus is expected to shift to the outlook for earnings growth in 2H26, which is projected to accelerate from 1H26; and (3) KB LAMINATES (01888.HK) started production lines for T-glass fiber cloth (T-cloth) in August. Considering the company's profit alert for 1H26 was weaker than the broker's expectations, coupled with intensifying market concerns over AI capital expenditures by major data center operators and Nvidia's "closed-loop financing", Citi lowered its earnings forecasts for KB LAMINATES (01888.HK) for 2026-2028 by 9% to 14%. Based on a target PE ratio of 22x, which is more than 1.5 standard deviations above the historical average, the broker cut the TP from HKD130 to HKD92, representing a reduction of about 29%, and revised the rating from "Buy" to "Buy/ High Risk". (da/u)~ 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. | |