slammeriii6500hs| Citigroup: Reiterates KLHC's "Buy" rating target price rises to HK$12.5

Citi released a research report sayingslammeriii6500hs, reiterated the "Buy" rating of Kingboard Laminates (01888), with a target price of 8slammeriii6500hs.2 Hong Kong dollars was raised to HK$12.5.

The report stated that the company will increase the average selling price of its "FR-4 laminate" by RMB 10 per sheet. This is the second price adjustment this year after the company raised its average selling price in mid-March this year in response to rising copper costs and improving terminal demand. Considering that the company's full orders in May, coupled with inflation in average selling unit prices, should continue to offset the recent surge in copper costs, the bank raised KLHL's profit forecast for the fiscal year 2024 to 2026 by 24% to 37%.

The bank expects that monthly shipments of Kingboard laminate will increase by approximately 30% year-on-year, which means that the utilization factor (UTR) will increase from 67% in the first half of fiscal year 2023 to 75% in the second half of fiscal year 2023, and then further increase to approximately 90% in fiscal year 2024; gross profit margin will also increase from 16% in fiscal year 2023 to approximately 20% in fiscal year 2024.

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