Summary of Kingboard Laminates Holdings (1888.HK) Conference Call Company Overview - **Company**: Kingboard Laminates Holdings (KBL) - **Industry**: Printed Circuit Board (PCB) Laminates - **Market Position**: KBL has a ~17% global market share in rigid laminates and over 30% in the PRC [15][16] Key Financial Projections - **Earnings Forecast**: - 2H25 earnings expected to double to HK$1.209 billion year-over-year - Core earnings projected to rise 58% to HK$1.155 billion [1][14] - **Earnings Growth**: - 1H25 earnings growth was 28% and 10% respectively [1] - **Gross Margin**: Expected to expand to over 20% in 2H25, compared to 18.4% in 1H25 [2] Pricing and Market Dynamics - **Average Selling Price (ASP) Inflation**: - KBL has raised ASP by 4 times in 4Q, with increases of 3-5% in October, ~10% in November, and ~10% in December [2] - **Copper Costs Correlation**: - KBL stock has a high correlation (60%+) with copper costs, which are at record highs [10] - **Concerns**: - Recent stock decline (~8%) attributed to concerns over CCL price inflation not keeping pace with copper costs and Nanya Plastic's missed 4Q25 results [1][11] Supply Chain and Certification - **NVDA Supply Chain**: - KBL is in the process of certification for low Dk gen 1 and gen 2 materials for potential entry into NVDA's supply chain, expected to be completed by 1Q26 [3][14] - **Production Capacity**: - Plans to build an additional 1,500 tons of low Dk gen 1/gen 2 by 1Q26 and another 3,000 tons by end-2026 [9] Investment Strategy and Valuation - **Recommendation**: - KBL shares rated as Buy with a target price of HK$20.50, implying a potential return of 64.5% [4][17] - **Valuation Methodology**: - Target price based on a P/E of 19-20x for 2026E, reflecting peak P/E during the upcoming industry upcycle [17] Risks and Considerations - **Risks**: - Customer certification delays, macroeconomic growth in China, and demand recovery for electronic goods could impact performance [18][21] - **Market Conditions**: - The economic slowdown in China has affected discretionary consumption items, which account for over 80% of KBL's total sales [16] Conclusion - Kingboard Laminates Holdings is positioned for significant earnings growth in the upcoming periods, driven by ASP inflation and potential entry into the NVDA supply chain. However, the company faces risks related to macroeconomic conditions and certification timelines. The investment outlook remains positive with a strong buy recommendation based on projected earnings recovery and market positioning.

Summary of Key Points from the Conference Call Industry Overview - Focus on the Asia technology (hardware) sector, particularly the AI supply chain, as a priority investment area for 1H26 due to its significant influence on earnings growth amid concerns over smartphone/PC demand and auto production recovery [2][12] Core Themes and Stock Recommendations 1. **AI Supply Chain Investment**: - Emphasis on investing in the AI supply chain, which is expected to drive earnings growth despite potential slowdowns in other sectors [2][12] - Anticipation of clearer benefits from AI for earnings in 2026, with no signs of slowdown heading into 2027 [12] 2. **Under-the-Radar AI Themes**: - Five notable themes identified: 1. **Power Consumption**: Opportunities in power supply, power rack products, capacitors, and power semiconductors. Companies to watch include Delta Electronics, Panasonic HD, Murata Mfg., Taiyo Yuden, and Renesas Electronics [6][25] 2. **Data Transmission**: Advancements in large-scale data transmission technologies, with companies like Fujikura and Mitsubishi Electric highlighted [6][25] 3. **Niche Components**: Price stabilization and increases in demand for components like MLCCs and substrates, with key players including Murata Mfg. and SEMCO [6][25] 4. **Physical AI Integration**: Companies like Hitachi and Mitsubishi Electric are leading in embedding AI into industrial applications [6][27] 5. **Software/Services Disruption**: Generative AI's potential to improve productivity in Japan's software industry, with Fujitsu and NEC as key players [6][27] 3. **High-Profile Sub-Sectors**: - Continued growth in foundry, memory, semiconductor production equipment, AI servers, and edge AI, with recommended stocks including TSMC, Samsung Electronics, and Hon Hai [30][31] Market Dynamics and Risks - **Top-Down Risks**: - Concerns regarding valuations, implementation risks, over-investment, monetization challenges, and funding sources, particularly with emerging players in the market [13] - **Bottom-Up Perspective**: - Fundamentals differ from the IT bubble of 2000, with a larger scale and longer timeline for AI infrastructure development, and sound supply chain management in Asian hardware [14][16] Technological Advancements - **Power Consumption Trends**: - Significant rise in power consumption for AI servers, with expectations for voltage increases to 800V and beyond, creating business opportunities for power-related products [33][38] - **Data Transmission Innovations**: - Transition to higher communication speeds (800-1.6Tbps) and co-packaged optics (CPO) expected to enhance industry value [58][59] Conclusion - The Asia technology sector, particularly the AI supply chain, presents substantial investment opportunities driven by technological advancements and evolving market dynamics. Key players and themes are positioned to benefit from these trends, while investors should remain cautious of potential risks associated with rapid market changes.

Investment Rating - The investment rating for Jiangxi Copper is "Buy" with a target price of HK$27.90, indicating an expected share price decline of 12.2% from the current price of HK$31.76 [6]. Core Insights - The long-term treatment charge and refining charge (LT TC/RC) for copper concentrate is expected to be lower year-on-year in 2026, reflecting a tight supply situation as the LT TC/RC covers approximately 80% of total purchased overseas copper concentrate in 2025, down from 90% in previous years [1][2]. - The company plans to avoid large-scale maintenance work for copper smelting capacity until the LT TC/RC price for the next year is determined, with an anticipated increase in the percentage of spot TC/RC in the fourth quarter of 2025 if the LT TC/RC price remains low [3]. - Management believes that the impact of anti-involution on the copper smelting industry will primarily affect new capacity rather than existing capacity, as copper demand is expected to continue increasing, thus limiting the impact on copper prices [4]. - The copper foil business is projected to incur a net loss in 2025, but strong orders for lithium battery copper foil since September 2025 are expected to improve profitability in 2026, despite processing fees not significantly increasing [5]. Summary by Sections Valuation - Jiangxi Copper's H-shares are valued at HK$27.90 based on a combination of discounted cash flow (DCF) and price-to-book (P/B) fair values, with a DCF valuation yielding an NPV-per-share of HK$32.90 and a P/B valuation yielding HK$22.90 [8].