UBS: Target price for the first “buy” rating of Jiantao Laminate (01888): HK$58

The Zhitong Finance App learned that UBS released a research report saying that AI demand is driving the tighter supply of copper clad plates and upstream raw materials. As the world's largest supplier of traditional FR4 copper clad plates, Jiantao Laminate (01888) will be the main beneficiary. It covers the “buy” rating for the first time. It believes that the stock price falling about 60% from the June high is an attractive opportunity, with a target price of HK$58.

The report points out that even after the end of this round of the traditional copper-clad plate upward cycle, the company's profit is not expected to decline like the previous cycle, because the company's expansion of AI-related upstream materials and copper-clad plate business will bring new structural growth impetus, and its vertically integrated business model is also a major differentiating advantage.

UBS believes that Jiantao laminates also have short-term profit growth cycles for traditional copper-clad panels and long-term AI material business exposure. It is estimated that traditional FR4 copper-clad panels will still be the main profit driver in 2026-2027. UBS's net profit in 2026 will increase to 10.465 billion yuan in 2027, while special or AI glass fiber cloth, ultra-low profile copper foil, and high-end copper clad panels are expected to bring more significant contributions from 2027.