Company Coverage
Kingboard Laminates (1888 HK): 1H26: Net Profit Soars 209% On Burgeoning AI Demand; Expecting Intensified Supply Shortage In 2H26
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$35.10
HK$42.43
20.9%
HK$25.30
Analyst
Analyst
Highlights
- KBL's 1H26 revenue/net profit soared 58%/209% yoy respectively on multiple laminates ASP hikes, meaningful gross margin expansion and
operating leverage.
- KBL is stepping up capacity expansion for high-end specialty fibreglass yarn and fabric. We expect the price of laminates and upstream materials to remain at an elevated level in 2H26 due to intensifying supply shortage and estimate that AI-related specialty yarn will contribute 3.3%/10.6%/12.8% of total revenue in 2026-28.
- Maintain BUY with a higher target price of HK$42.43 from HK$25.30.
Analysis
Strong 1H26 results. Kingboard Laminates’ (KBL) laminates revenue grew 58.1% yoy to HK$13,786m, representing 58% of our full-year estimate,
primarily driven by strong AI demand. Sales volume rose 14% yoy to an average monthly shipment of 10m sheets. Gross margin expanded 12.3ppt yoy to 30.7% (vs our full-year estimate of 22.0%) on multiple ASP hikes for laminates and upstream materials in 1H26, driven by burgeoning AI demand and supply shortage. Attributable net profit soared 209% yoy to HK$2,887m, representing 90% of our full-year estimate, driven by strong revenue growth, meaningful gross margin expansion and operating leverage.
Highlights
- KBL's 1H26 revenue/net profit soared 58%/209% yoy respectively on multiple laminates ASP hikes, meaningful gross margin expansion and
operating leverage.
- KBL is stepping up capacity expansion for high-end specialty fibreglass yarn and fabric. We expect the price of laminates and upstream materials to remain at an elevated level in 2H26 due to intensifying supply shortage and estimate that AI-related specialty yarn will contribute 3.3%/10.6%/12.8% of total revenue in 2026-28.
- Maintain BUY with a higher target price of HK$42.43 from HK$25.30.
Analysis
Strong 1H26 results. Kingboard Laminates’ (KBL) laminates revenue grew 58.1% yoy to HK$13,786m, representing 58% of our full-year estimate,
primarily driven by strong AI demand. Sales volume rose 14% yoy to an average monthly shipment of 10m sheets. Gross margin expanded 12.3ppt yoy to 30.7% (vs our full-year estimate of 22.0%) on multiple ASP hikes for laminates and upstream materials in 1H26, driven by burgeoning AI demand and supply shortage. Attributable net profit soared 209% yoy to HK$2,887m, representing 90% of our full-year estimate, driven by strong revenue growth, meaningful gross margin expansion and operating leverage.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$35.10
HK$42.43
20.9%
HK$25.30
Analyst
Analyst
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