Summary of the Conference Call for 建滔积层板 Industry Overview - 建滔积层板 is a significant player in the domestic special electronic cloth industry, with production capacity second only to 中国巨石 [2][3] - The company is actively upgrading its industry position, focusing on high-frequency and high-speed performance driven by AI demand [2][3] - The copper-clad laminate (CCL) market is experiencing improved conditions due to supply-demand adjustments, despite minor disruptions from electronic tariffs [2][3] Key Points and Arguments - **Product Development and Market Position** - Currently, 建滔's high-end products reach only the 马六 level, lagging behind the mainstream 马八 and 马九 levels [2][4] - The company has integrated production capabilities for copper foil, fiberglass cloth, and resin, enhancing its competitiveness [2][4] - Plans to expand production by 70,000 tons of fine sand indicate strong cost control capabilities [2][3] - **Market Dynamics** - The special electronic materials industry is facing tight supply, particularly for second-generation cloth and low-expansion cloth, with shortages expected to exceed 100% [10] - A significant price increase in the CCL market occurred on August 15, marking the first effective price hike of the year, with further increases anticipated in Q4 [2][18] - **Future Development Plans** - 建滔 plans to complete the production of second-generation cloth by the end of this year and expand production lines for low-expansion cloth and quartz cloth [11] - The company aims to accelerate the development and verification of third and fourth-generation HVLP copper foil products [11] - **High-End Strategy** - The high-end strategy focuses on upstream raw materials, with plans to gradually catch up to 马七, 马八, and 马九 series products [8][9] - The company is establishing close collaborations with core customers, including cloud computing firms and NVIDIA, to enhance market competitiveness [13] Additional Important Insights - **Profitability and Valuation** - 建滔's profit forecast for 2025 is approximately HKD 3 billion, with a price-to-earnings ratio of around 12 times [16] - The static price-to-earnings ratio is about 15 to 16 times, while the dynamic ratio is approximately 11 to 12 times, indicating strong valuation potential compared to the A-share market [16] - **Catalysts to Watch** - Key catalysts include the certification progress of first-generation electronic cloth with overseas CCL manufacturers, the pace of copper foil certification, and pricing actions from major competitors [17] - **Impact of Electronic Tariffs** - The anticipated electronic tariffs may affect the entire supply chain, but the extent of the impact remains unclear [20] - Adjustments in the market could present opportunities, especially in the context of poor performance in the Hong Kong stock market [20]

Core Viewpoint - Cathay Pacific Haitong has initiated coverage on Jiantao Laminated Board (01888) with a "Buy" rating, highlighting its position as a leading company in the copper-clad laminate industry and optimistic about the price trends and performance growth from product upgrades [1] Group 1: Company Overview - Jiantao Laminated Board is recognized as a leader in the copper-clad laminate industry, with an integrated layout of upstream materials creating a differentiated barrier [1] - The company is expected to achieve net profits of HKD 23.49 billion, 31.23 billion, and 38.15 billion for the years 2025, 2026, and 2027 respectively, with a target price set at HKD 20 based on PE valuation [1] Group 2: Product Development and Market Position - The company is advancing in high-end product development, with its first low-dielectric electronic yarn furnace announced to be in production, leading the domestic market in technical progress [1] - The company has a production capacity of 200,000 tons for traditional electronic yarn, corresponding to an estimated 7-8 million meters per year, with current price trends for traditional electronic cloth on an upward cycle [1][2] Group 3: Industry Trends and Demand - The copper-clad laminate industry is expected to see a new round of price increases in the second half of 2025, driven by improved demand from AI and limited expansion of mid-range production capacity [2] - The overall demand for copper-clad laminates is anticipated to grow positively, with major companies focusing on high-end products, indicating a favorable supply-demand balance for traditional mid-range copper-clad laminates [2]

Group 1 - The core viewpoint of the report is that Jiantao Laminated Board (01888) is rated as "Buy" due to its leading position in the copper-clad laminate industry and optimistic price trends for traditional copper-clad laminates [1] - The company is expected to achieve net profits of HKD 2.349 billion, HKD 3.123 billion, and HKD 3.815 billion for the years 2025-2027, with a target price set at HKD 20 based on PE valuation [1] - The company has made significant progress in high-end material integration, with the first low-dielectric electronic yarn furnace announced to be in production, leading the domestic market [1] Group 2 - The company's core advantage in high-end products lies in the stability of material integration, with the HVLP-3 copper foil entering the verification phase for further upgrades [2] - The demand for traditional copper-clad laminates is expected to improve alongside AI demand, with major companies focusing on high-end board production [2] - The overall supply-demand dynamics in the copper-clad laminate industry are optimistic, with limited expansion in mid-range capacity and a moderate upward trend in global demand [2]

Financial Performance - The company reported a revenue of HKD 9,588,032 thousand for the six months ended June 30, 2025, representing a 11.0% increase from HKD 8,638,244 thousand in the same period of 2024[2] - Gross profit for the same period was HKD 1,762,820 thousand, up 3.4% from HKD 1,704,498 thousand year-on-year[2] - The net profit for the period was HKD 933,545 thousand, an increase of 28.0% compared to HKD 729,336 thousand in 2024[2] - Basic and diluted earnings per share increased to HKD 0.299 from HKD 0.233, reflecting a growth of 28.3%[2] - Total comprehensive income for the period was HKD 1,160,014 thousand, compared to HKD 594,195 thousand in the previous year, marking a 95.5% increase[4] - The overall profit before tax for the six months ended June 30, 2025, was HKD 1,171,287,000, compared to HKD 957,465,000 for the same period in 2024, indicating an increase of about 22.3%[16] - The group’s revenue for the six months ended June 30, 2025, increased by 11% to HKD 9,588 million compared to HKD 8,638.2 million in the same period last year[46] - Net profit attributable to shareholders rose by 28% to HKD 933.3 million, up from HKD 727.8 million year-on-year[46] Assets and Liabilities - The company's total assets as of June 30, 2025, amounted to HKD 15,125,297 thousand, up from HKD 13,799,534 thousand at the end of 2024[5] - Current liabilities increased to HKD 8,498,438 thousand from HKD 5,763,418 thousand, indicating a significant rise in short-term obligations[6] - The company’s equity attributable to shareholders decreased to HKD 14,941,786 thousand from HKD 15,342,427 thousand, reflecting a decline of 2.6%[6] - The company reported a cash and cash equivalents balance of HKD 1,461,212 thousand, down from HKD 1,924,271 thousand at the end of 2024[5] - The net trade receivables as of June 30, 2025, amounted to HKD 4,057,935,000, compared to HKD 3,617,182,000 as of June 30, 2024, showing an increase of approximately 12.2%[29] - The company’s total assets as of June 30, 2025, were HKD 8,426,589,000, compared to HKD 7,038,277,000 as of December 31, 2024, reflecting an increase of approximately 19.7%[29] - As of June 30, 2025, the group's total borrowings amounted to HKD 4,466,709,000, with HKD 3,357,547,000 due within one year[55] Cash Flow and Investments - The net cash used in operating activities for the six months ended June 30, 2025, was HKD (327,008,000), compared to HKD 302,740,000 generated in the same period of 2024[9] - The net cash used in investing activities was HKD (896,531,000), significantly higher than HKD (159,209,000) in the previous year[9] - The company reported a net cash inflow from financing activities of HKD 760,480,000, compared to HKD 590,678,000 in the prior year, reflecting an increase of approximately 28.73%[9] - The group’s investment in securities increased to approximately HKD 2,535.7 million, representing about 10% of total assets as of June 30, 2025[48] - The bond investment portfolio's fair value totaled HKD 249.6 million, with interest income from bond investments rising by approximately 5% to HKD 4.99 million[48] Dividends - The company declared a dividend of HKD 1,560,000 thousand for the period, significantly higher than HKD 374,400 thousand in the previous year[6] - The company declared an interim dividend of HKD 0.15 per share for the six months ended June 30, 2025, up from HKD 0.12 per share for the same period in 2024, reflecting a 25% increase[26] Operational Efficiency - The inventory turnover period was 62 days, while trade receivables turnover was 90 days, indicating changes in operational efficiency[54] - The average monthly shipment volume for copper-clad laminates rose by 5% year-on-year to 9 million sheets[47] Market and Growth Prospects - The company expects to continue expanding its market presence and investing in new technologies to drive future growth[8] - The group anticipates strong demand in the overall electronics market driven by AI technology and the growth of cloud data centers, robotics, and autonomous driving[61] - The group plans to increase production capacity of low dielectric fiberglass yarn by adding three more kilns in the second half of 2025, enhancing its market share in high-end products[62] Corporate Governance - The company has adopted and complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules during the six months ending June 30, 2025[75] - The audit committee reviewed the accounting policies and practices adopted by the group, including the unaudited interim financial report for the six months ending June 30, 2025[74] - The directors confirmed compliance with the standard code of conduct regarding securities transactions during the six months ending June 30, 2025[76] Employee and Management Information - The group employed approximately 10,600 staff as of June 30, 2025, an increase from 9,900 employees as of December 31, 2024[59] - The company’s directors believe the likelihood of default by the parties involved in the financial guarantees is extremely low[43]

中金此前指，随着AI大模型等技术的迅猛发展，全球算力需求呈爆发式增长，直接推动高性能服务器 市场快速扩张，带动上游PCB及CCL基板市场需求迅速提高。开源证券认为，下半年公司覆铜板价格已 率先调涨，PCB需求强劲或支撑价格刚性，下半年业绩表现有望受益；2026年高端CCL及物料产能布局 提速，AI期权有望步入兑现期，驱动估值中枢上移，实际报表贡献或在2027年集中释放。 消息面上，甲骨文日前发布了自2025年6月1日开始的FY26Q1财报，剩余履约义务等财务指标高速增 长。此外，英伟达发布新一代Rubin CPX芯片系统，强化了AI编码和视频处理能力。西南证券认为，在 生成式AI模型快速发展，应用加速落地的背景下，AI算力基础设施持续迭代，并获得有望加速建设。 建滔积层板(01888)涨超6%，截至发稿，涨6.33%，报12.1港元，成交额1.71亿港元。 ...

Core Viewpoint - The stock of Jiantao Laminated Board (01888) has increased by over 6%, reaching HKD 12.1 with a trading volume of HKD 171 million, driven by positive developments in the AI and high-performance computing sectors [1] Group 1: Company Developments - Oracle recently released its FY26Q1 financial report, showing rapid growth in remaining performance obligations and other financial metrics [1] - Nvidia launched the new generation Rubin CPX chip system, enhancing AI coding and video processing capabilities [1] Group 2: Industry Trends - Southwest Securities noted that the rapid development of generative AI models and their accelerated application is leading to continuous iterations in AI computing infrastructure, which is expected to accelerate construction [1] - CICC indicated that the explosive growth in global computing power demand, driven by the rapid advancement of AI large models, is propelling the high-performance server market's rapid expansion, thereby increasing demand for upstream PCB and CCL substrate markets [1] - Open Source Securities mentioned that the price of copper-clad laminates has already increased in the second half of the year, with strong PCB demand likely supporting price rigidity, and the company's performance in the second half is expected to benefit [1] - The acceleration of high-end CCL and material capacity layout in 2026 is anticipated, with AI options expected to enter a realization phase, driving the valuation center upward, and actual financial contributions are likely to be concentrated in 2027 [1]

Group 1 - The core viewpoint of the article highlights the positive performance of Kintor Pharmaceutical (01888), which saw its stock price increase by 4.46% to HKD 11.7, with a trading volume of HKD 190 million [1] - Broadcom's third-quarter earnings exceeded expectations, and the company provided strong guidance for the fourth quarter, particularly in the AI chip business, indicating a continued acceleration in this sector [1] - The demand for AI servers, including GPUs and ASICs, remains high due to ongoing global developments in AI computing infrastructure, which is expected to enhance the overall industry chain's prosperity, particularly for PCB manufacturers and upstream materials [1] Group 2 - Huaxin Securities noted that the price of copper-clad laminates (CCL) has already increased in the first half of the year, and strong PCB demand may support price rigidity, leading to improved performance in the second half of the year [1] - The company is expected to accelerate its capacity layout for high-end CCL and materials by 2026, with AI options likely entering a realization phase, which could drive an upward shift in valuation [1] - The actual contribution to financial statements is anticipated to be concentrated in 2027, with a "buy" rating maintained by Open Source Securities [1]

Group 1 - The core viewpoint of the article highlights the positive performance of Jiantao Laminated Board (01888), which saw a rise of over 4%, reaching HKD 11.7 with a trading volume of HKD 190 million [1] - Broadcom's third-quarter earnings exceeded expectations, and the company provided strong guidance for the fourth quarter, particularly in the AI chip business, indicating a continued acceleration [1] - The demand for AI servers, including GPUs and ASICs, remains high due to ongoing global development of AI computing infrastructure, which is expected to enhance the entire PCB industry chain's prosperity [1] Group 2 - Huaxin Securities noted that the price of copper-clad laminates (CCL) has already increased in the first half of the year, and strong PCB demand may support price rigidity, leading to improved performance in the second half of the year [1] - Open Source Securities anticipates that the capacity layout for high-end CCL and materials will accelerate by 2026, with AI options likely entering a realization phase, driving up valuation centers [1] - The actual contribution to financial statements is expected to be concentrated in 2027, maintaining a "buy" rating for the stock [1]

Core Viewpoint - 建滔积层板's stock has dropped over 7%, currently trading at 11.85 HKD, with a trading volume of 320 million HKD. The company reported a revenue of 9.588 billion HKD for the first half of the year, a year-on-year increase of 11%, and a net profit of 933 million HKD, up 28% year-on-year [1] Group 1 - 建滔积层板's copper-clad laminate prices have already increased in the second half of 2025, supported by strong PCB demand, which may benefit the company's performance in the latter half of the year [1] - The company is expected to accelerate its capacity layout for high-end CCL and materials in 2026, with AI options likely entering a realization phase, potentially driving up the valuation center [1] - Actual contributions to the financial statements may be concentrated in 2027 [1] Group 2 - 大华继显 reported a 1.3 percentage point decline in gross margin for 建滔积层板 in the first half of the year, as the increase in average selling price of laminates did not fully cover the rising copper costs [1] - The firm maintains a positive outlook on the company's business and new material development but has downgraded the stock rating to "hold," indicating that the current stock price reflects short-term growth potential [1] - Revenue forecasts for 2025 to 2027 remain largely unchanged, but earnings estimates have been reduced by 16%, 14%, and 9% respectively, reflecting weaker average selling price increases for laminates [1]

Core Viewpoint - 建滔积层板's stock has dropped over 7%, currently trading at 11.85 HKD, with a trading volume of 320 million HKD. The company reported a revenue of 9.588 billion HKD for the first half of the year, a year-on-year increase of 11%, and a net profit of 933 million HKD, up 28% year-on-year [1]. Financial Performance - The company achieved a revenue of 9.588 billion HKD in the first half of the year, reflecting an 11% increase compared to the previous year [1]. - The net profit for the same period was 933 million HKD, which represents a 28% year-on-year growth [1]. - The gross profit margin decreased by 1.3 percentage points due to the average selling price of laminates not fully covering the rising copper costs [1]. Market Outlook - 开源证券 indicates that the price of copper-clad laminates (CCL) has already begun to rise in the second half of 2025, supported by strong PCB demand, which may benefit the company's performance in the latter half of the year [1]. - The company is expected to accelerate its capacity layout for high-end CCL and materials in 2026, with AI options potentially entering a realization phase, driving an upward shift in valuation [1]. - 大华继显 has downgraded the stock rating to "Hold," suggesting that the current stock price reflects short-term growth potential, while maintaining revenue forecasts for 2025 to 2027 but reducing earnings estimates by 16%, 14%, and 9% respectively due to weaker average selling price increases [1].