Shares of KB LAMINATES (HKEX: 01888) rose more than 6% during the trading session. At the time of writing, the stock is up 3.59%, trading at HK$62.85, with a turnover of HK$1.129 billion.

Citigroup's Updated Analysis and Price Target

Citigroup has issued a research report, raising the price target for KB LAMINATES from HK$65 to HK$90 and maintaining its "Buy" rating. Using a sum-of-the-parts valuation, the bank anticipates a price-to-earnings ratio of approximately 10 times for 2027. It has also increased its profit forecasts for 2026 to 2028 by 34% to 53%, primarily benefiting from stronger-than-expected price increases for electronic glass fabric at KB LAMINATES.

Business Mix and Valuation Assessment

The report notes that by 2028, about 85% of the core net profit for the group is expected to come from its laminate/printed circuit board business, up from roughly 60% in 2025. Despite this, the group is currently trading below its book value, which the bank views as unjustified. Citigroup has reiterated its "Buy" recommendation following the recent pullback in the share price. The bank continues to prefer KB LAMINATES over the parent group, citing the former's larger potential for earnings upgrades.