Investment Rating - The report gives a "Buy" rating for the company, indicating a positive outlook for its stock performance [3][6]. Core Insights - The company, Kingboard Laminates (1888.HK), is a leading manufacturer of copper-clad laminates with a vertically integrated supply chain, maintaining a global market share of 14.4% in 2024, the highest in the industry [2][3]. - The demand for copper-clad laminates is expected to grow due to the robust expansion of the PCB industry, driven by applications in AI servers, consumer electronics, automotive electronics, and communication devices [1][41]. - The company is well-positioned to benefit from rising copper prices and a tight supply environment, which are expected to enhance both pricing and profitability [2][3]. Company Overview - Kingboard Laminates was established in 1988 and has evolved into a major player in the copper-clad laminate market, with over 60 factories globally and a strong presence in South China and East China [1][16]. - The company specializes in various types of copper-clad laminates, including FR-4 epoxy glass fiber laminates, which are crucial for mainstream markets such as computers and communications [2][25]. Market Position - The copper-clad laminate market is characterized by high concentration, with the top four manufacturers holding approximately 50% of the market share, indicating significant barriers to entry and strong pricing power for established players [2][70]. - The report highlights that the company has a strong bargaining power due to its diversified customer base, with the top five customers accounting for less than 30% of total sales [2][3]. Financial Projections - The company is projected to achieve net profits of HKD 2.17 billion, HKD 3.95 billion, and HKD 4.84 billion for the years 2025, 2026, and 2027, respectively, reflecting growth rates of 64%, 82%, and 22% [3][5]. - The report indicates that the company's stock is currently undervalued compared to its peers, with projected P/E ratios of 27x, 15x, and 12x for the years 2025 to 2027 [3][5]. Industry Analysis - The PCB industry is expected to see a compound annual growth rate (CAGR) of 5.2% from 2024 to 2029, with the total market value projected to reach USD 94.66 billion by 2029 [1][44]. - The demand for high-frequency and high-speed copper-clad laminates is increasing, particularly in the AI server sector, which requires advanced materials to support higher data transmission rates [2][67].
建滔积层板（01888）：首次覆盖报告：全球覆铜板王者归来，铜价上行赋能盈利+AI 高端材料开启成长新周期