Changes in Hong Kong stocks | Jiantao Laminated Board (01888) rose more than 5%, and the price increase of copper-clad plates accelerated, driving a sharp increase in performance, Citi expects another price increase in early October

The Zhitong Finance App learned that Jiantao Laminated Board (01888) rose by more than 5%. As of press release, it had risen 5.06% to HK$48.14, with a turnover of HK$2,754 billion.

According to the news, at the end of August this year, Jiantao Laminate issued the 7th price increase letter to customers. From now on, the price of all FR-4 copper-clad plates with a uniform thickness of 10% will increase. Thick cloth above 7628 (inclusive) in PP semi-cured sheets will increase 10%, and thin cloth below 7628 will increase 20%. The price increase letter clearly indicates the reason upstream, that is, the supply of core materials such as glass cloth and copper foil is becoming increasingly scarce, and prices have risen sharply. It is worth noting that since March of this year, the price of Jiantao laminated boards has increased seven degrees. Based on compound interest calculations, the cumulative increase of FR-4 copper clad panels (over 1.3 mm) alone has exceeded 100%.

The acceleration in the price increase of copper clad plates further drove a sharp increase in the company's performance in the first half of the year. In the first half of this year, the company achieved operating income of HK$14.904 billion, an increase of 55% over the previous year; net profit to mother was HK$2,887 billion, an increase of 209% over the previous year. Citigroup Research reports that it is expected that Jiantao Laminate will raise the price of copper clad board again in early October to pass on costs and reaffirm the “buy” rating. The target price is HK$95.