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2026-09-25 10:24:40 Huatai released a research report initiating coverage on KINGBOARD HLDG (00148.HK) with a Buy rating and a target price of HKD92.75. The broker said the company is a leading vertically integrated PCB player under the Southbound Stock Connect universe, with supporting capabilities in key upstream raw materials including copper foil, electronic fiberglass yarn and electronic fiberglass cloth, forming a vertically integrated PCB industry chain. Driven by AI, the company's PCB industry chain-related businesses continue to prosper, while businesses such as chemicals are gradually improving, with profitability expected to strengthen significantly. The profit contribution from high-value PCB-related products is increasing, supporting potential valuation re-rating. The broker noted that according to Prismark, global PCB sales are expected to reach USD85.2 billion in 2025, up 16% YoY, and are projected to reach USD123.3 billion by 2030, with CAGR for 2026 to 2030 expected at 7.7%. The company is the world's largest rigid copper clad laminate producer, with integrated advantages spanning electronic cloth, copper foil, resin, copper clad laminates and printed circuit boards. On chemicals, the broker believes market conditions for products including acetic acid, phenol, acetone, bisphenol A and caustic soda are expected to gradually recover from 2026 to 2028. On property, the company has stopped adding land reserves and new property investments, and will mainly focus on rental income starting from 2026, with gross margin expected to improve. The broker forecast the company's net profit attributable to shareholders for 2026 to 2028 at HKD9.1 billion, HKD9.3 billion and HKD9.6 billion respectively, representing YoY increases of 106%, 3% and 3%, corresponding to EPS of HKD8.08, HKD8.28 and HKD8.53. Referring to the average 2027 PE ratio of 19x for comparable copper clad laminate-related businesses and considering the Hong Kong stock discount, the broker assigned a 2027 PE ratio of 13x to the company's copper clad laminate-related business. For the chemicals-related business, with reference to the average 10x PE ratio of comparable companies and taking into account the Hong Kong stock discount, the broker assigned a 2027 PE ratio of 7x, deriving a target price of HKD92.75. (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. | |