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KINGBOARD HLDG (00148.HK) Slumps Nearly 10% as Citi Sees Attractive Buying Opportunity on Weakness
2026-06-26 11:08:40 KINGBOARD HLDG (00148.HK) opened 2.1% lower today, hitting a trough of HKD114, and was last quoted at HKD116.7, down 9.32%, with turnover of 37.7203 million shares, involving HKD4.629 billion. Citi said in a research report, citing HKEX data, that KINGBOARD HLDG癒礎s largest shareholder Hallgain reduced its stake by 67.381 million shares in the market at an average price of HKD132.7 per share between June 22 and 24, involving USD1.147 billion. Its shareholding decreased from 43.5% to 37.5%. The broker believes this explains why KINGBOARD HLDG癒礎s share price significantly underperformed its subsidiary KB LAMINATES (01888.HK) by about 12% over the past three days. In addition, data showed that a major shareholder transferred 30 million shares into a CCASS account at CLSA, and further market disposals cannot be ruled out. It is expected that KINGBOARD HLDG癒礎s share price will continue to face pressure in the near term. However, Citi believes that the recent weakness driven by the major shareholder癒礎s stake reduction provides a good Accumulate opportunity for investors. The company is currently valued at only about 15x projected FY2027 PE and 2x PB. Fundamentally, although the printed circuit board (PCB) industry has weaker pricing power than copper clad laminates (CCL) and electronic-grade glass fiber cloth due to market fragmentation, KINGBOARD HLDG benefits from its vertical integration advantages. Amid the current shortage of CCL and electronic-grade glass fiber cloth, downstream customers are shifting orders to KINGBOARD HLDG to secure stable supply, enabling the company to raise the average selling price of its PCBs, which is sufficient to pass through and offset rising CCL costs. The broker sees ample room for earnings upgrades for FY2026-FY2027 and therefore maintained its Buy rating with an unchanged TP of HKD202. (ad/u)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |