Group 1 - Citigroup has initiated a "Buy" rating for Kingboard Laminates (01888) and a "Neutral" rating for Delta Electronics (00179) due to the divergent impact of rising copper prices on corporate earnings [1] - Copper prices surged by 22% year-on-year and approximately 14% quarter-on-quarter in Q4 2025, leading to significant differences in the earnings outlook for the two industry leaders [1] - Kingboard Laminates, as the world's largest copper-clad laminate manufacturer with a market share of about 16%, is expected to pass on rising costs to downstream customers, resulting in accelerated profit growth [1] Group 2 - Delta Electronics faces severe cost challenges, with copper accounting for over 25% of its sales costs, and its pricing power is limited in the automotive sector, which constitutes 84% of its sales [2] - If copper prices increase by 10%, and assuming Delta Electronics bears half of the cost pressure, its earnings could be impacted by up to 11% [2] - The forecast for Delta Electronics indicates a 7.1% year-on-year decline in core earnings for the second half of FY2026, contrasting with a 2.8% growth in the first half [2]
花旗：铜价飙升 看好建滔积层板(01888) 首予“增持”评级