Movement Alert|KB LAMINATES Rises 3.52% in Regular Trading, Morgan Stanley Issues Overweight Rating Amid Continued Major Shareholder Buying

Market Focus
Sep 21

On September 21, KB LAMINATES rose 3.52% in regular trading, trading at HK$48.6 per share, with turnover of approximately HK$404 million. The rally was driven by a confluence of a fresh investment bank upgrade and sustained insider buying.

Morgan Stanley recently initiated an \"Overweight\" rating on KB LAMINATES with a target price of HK$75, noting that capacity expansion for PCB glass fiber cloth and copper foil remains constrained by equipment supply bottlenecks. The bank highlighted that the company expects the glass fiber cloth shortage to persist through 2027, underpinning strong pricing power. Separately, Citi has reiterated a \"Buy\" rating with a higher target price of HK$95, anticipating another copper clad laminate price hike in early October.

Meanwhile, major shareholders including Hallgain Management Limited and Kingboard Holdings Limited have conducted multiple rounds of open-market purchases since early September, lifting their combined stake to approximately 62.13%. Chairman Zhang Guohua also personally added to his position.

Fundamentally, the company reported H1 revenue of approximately HK$14.904 billion, up 55% year-over-year, with adjusted net profit surging 209% to HK$2.887 billion. Gross margin expanded sharply from 18.39% to 30.71%, reflecting seven rounds of FR-4 copper clad laminate price increases since March with cumulative gains exceeding 100%.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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