Shares of KB LAMINATES (HKEX: 01888) have surged more than 6%. At the time of writing, the stock is up 4.5% to HK$63.4, with a trading turnover of HK$672 million.

The catalyst for the move is a potential supply disruption. The Strait of Hormuz has been blocked for over three months, and the Saudi Jubail Industrial Area, which supplies approximately 70% of the world's high-purity polyphenylene ether resin, has been shut down since late March. This has led to price increases for some printed circuit boards, with April prices rising up to 40% compared to March.

Market Analysis and Potential Beneficiaries

Industry analysts believe the interruption in PPE resin supply will directly drive up production costs for copper-clad laminates and PCBs. Leading CCL manufacturers with in-house upstream material supply capabilities and major PCB producers with strong ties to AI computing demand are expected to be the first to benefit from this current price hike cycle.

Brokerage Outlook and Forecast Revisions

Citigroup has published a research note stating it expects KB LAMINATES to issue a strong positive profit alert for its first-half results in mid-July. The bank has raised its profit forecasts for the company for the years 2026 to 2028 by 6% to 18%. This revision is based on the anticipation that stronger-than-expected average selling price inflation for upstream electronic glass fabric will lead to another round of price increases for copper-clad panels by the end of June.