Core Viewpoint - Evergrande Securities predicts that the net profit attributable to the parent company of Kingboard Laminates (01888) will reach HKD 2.17 billion, HKD 3.95 billion, and HKD 4.84 billion from 2025 to 2027, representing year-on-year growth of 64%, 82%, and 22% respectively. The company's stock price of HKD 18.78 corresponds to a PE ratio of 27x, 15x, and 12x for 2025-2027, which is lower than the average PE valuation of comparable companies. The company is a leading manufacturer of copper-clad laminates with a vertically integrated supply chain, excelling in cost control and supply chain stability. The report highlights the company's potential for valuation improvement and rarity as an investment target, initiating coverage with a "Buy" rating [1]. Group 1: Company Overview - Kingboard Laminates is a global leader in the copper-clad laminate manufacturing industry with a vertically integrated supply chain. The company was established in Shenzhen in 1988 and began producing paper-based copper-clad laminates in 1989. After its independent listing on the Hong Kong Stock Exchange in 2006, it has maintained a market share of over 20 years, ranking first in the global copper-clad laminate industry [1]. - The company has over 60 factories globally, primarily located in South China and East China, and is expanding into Southeast Asia. It focuses on producing various types of copper-clad laminates, copper foil, resin, and fiberglass yarn [1]. Group 2: Market Demand and Growth - The demand for copper-clad laminates is driven by the robust growth of the PCB industry, which is expected to reach a total value of USD 94.66 billion by 2029, with a compound annual growth rate (CAGR) of 5.2% from 2024 to 2029. The rapid development of AI servers is anticipated to significantly increase the demand for high-end PCB products, thereby boosting the need for high-frequency and high-speed copper-clad laminates [2]. - In 2024, Kingboard Laminates is projected to hold a 14.4% market share in the global copper-clad laminate market, ranking first among competitors. The company offers economical products like paper-based copper-clad laminates to meet the low-cost demands of consumer electronics, while its FR-4 series epoxy glass fiber laminates serve as the core revenue and profit source in mainstream markets [3]. Group 3: Pricing Power and Cost Management - The company possesses strong bargaining power and cost transmission capabilities, with less than 30% of sales coming from its top five customers. Approximately 78% of its revenue is derived from non-related third-party markets, enhancing its pricing power. The current tight supply in the copper-clad laminate industry, combined with rising copper prices, is expected to drive both prices and profitability upward [4]. Group 4: Strategic Expansion - Kingboard Laminates is strategically expanding its upstream raw material production, including a new factory in Guangdong for low-dielectric fiberglass yarn, which is expected to alleviate capacity bottlenecks. The company has also fully launched a new copper foil production capacity of 1,500 tons per month in Guangdong, responding to the increasing demand from data centers and cloud computing. This vertical integration helps mitigate risks associated with raw material price fluctuations and opens up growth opportunities in high-value low-dielectric fiberglass yarn [5].

Core Viewpoint - The stock price of Jiantao Laminated Board (01888) has shown a positive trend, with a current increase of 2.82% to HKD 19.31, driven by strong demand and favorable market conditions in the copper-clad laminate industry [1] Group 1: Company Performance - Jiantao Laminated Board's copper-clad laminates possess strong pricing power and cost pass-through ability, benefiting from a tight supply and rising copper prices, which are expected to drive both prices and profitability [1] - The company has a diversified customer base, with the top five customers accounting for less than 30% of total sales, and approximately 78% of revenue coming from non-related third-party markets, enhancing its bargaining power [1] Group 2: Industry Outlook - The current tight supply in the copper-clad laminate industry, combined with the upward trend in copper prices, is anticipated to positively impact both pricing and profitability [1] - The company is strategically expanding its production capacity for low-dielectric fiberglass yarn in Guangdong by 2025 to alleviate capacity bottlenecks, catering to high-end communication fields such as 5G, 6G, and AI servers [1] - The new copper foil production capacity of 1,500 tons per month in Lianzhou, Guangdong, is now fully operational, addressing the surge in demand for thick copper foil driven by data centers and cloud computing [1] - The vertical integration of the supply chain is expected to mitigate risks associated with fluctuations in upstream raw material prices, while high-value low-dielectric fiberglass yarn is likely to open new growth opportunities for the company [1]

Core Viewpoint - Jiantao Laminated Board (01888) has seen a price increase of over 4%, currently trading at HKD 19.66 with a transaction volume of HKD 217 million, driven by strong pricing power and cost transmission capabilities in the copper-clad laminate market [1] Group 1: Company Performance - Jiantao Laminated Board's copper-clad laminate products exhibit strong pricing power and cost transmission ability, benefiting from a tight supply and rising copper prices, which are expected to drive both prices and profitability [1] - The company's revenue is diversified, with the top five customers accounting for less than 30% of total sales before 2024, and approximately 78% of revenue coming from non-related third-party markets [1] Group 2: Industry Outlook - The current tight supply in the copper-clad laminate industry, combined with the upward trend in copper prices, is anticipated to boost both prices and profitability in the sector [1] - The company is strategically expanding its production capacity for low-dielectric fiberglass yarn in Guangdong to alleviate capacity bottlenecks, responding to high-end communication demands in 5G, 6G, and AI server markets [1] - The full production of the latest copper foil capacity of 1,500 tons per month in Lianzhou, Guangdong, is aimed at meeting the surging demand for thick copper foil driven by data centers and cloud computing [1] - The vertical integration of the supply chain is expected to mitigate risks associated with fluctuations in upstream raw material prices, while high-value low-dielectric fiberglass yarn is likely to open new growth opportunities for the company [1]

Core Viewpoint - The stock of Jiantao Laminated Board (01888) has increased by over 4%, currently trading at HKD 19.66, with a transaction volume of HKD 217 million, driven by strong pricing power and cost transmission capabilities in the copper-clad laminate market [1] Group 1: Company Analysis - Jiantao Laminated Board has strong pricing power and cost transmission ability due to a tight supply and rising copper prices, which are expected to drive both prices and profitability in the copper-clad laminate industry [1] - The company has a diversified customer base, with the top five customers accounting for less than 30% of total sales, and approximately 78% of revenue coming from non-related third-party markets [1] - The company is expanding its production capacity for low-dielectric fiberglass yarn in Guangdong by 2025 to alleviate capacity bottlenecks, responding to high-end communication demands in 5G, 6G, and AI server markets [1] Group 2: Industry Outlook - The copper-clad laminate industry is experiencing a tight supply situation, combined with an upward trend in copper prices, which is likely to enhance both pricing and profitability [1] - The company has fully launched a new copper foil production capacity of 1,500 tons per month in Lianzhou, Guangdong, to meet the increasing demand for thick copper foil driven by data centers and cloud computing [1] - The vertical integration of the supply chain is expected to mitigate risks associated with fluctuations in upstream raw material prices, while high-value low-dielectric fiberglass yarn is anticipated to open new growth opportunities for the company [1]