Citigroup: Jiantao Laminate (01888) AI material shortage drives profit upward, giving a “buy/high risk” rating target price of HK$95

The Zhitong Finance App learned that Citi released a research report saying that in the face of a continued shortage of AI materials, Jiantao Laminate (01888) has room for profit to rise, giving it a “buy/high risk” rating, with a target price of HK$95. The bank believes that Jiantao laminates can still use their high quality and vertical integration advantages to obtain AI-CCL test certification from Chinese and American GPU and CSP companies.

Citi recently exchanged views with the management of Jiantao Laminate on the development of upstream glass fiber cloth and copper foil in the AI-CCL supply chain. The bank pointed out that the current key bottleneck for electronic fiberglass cloth is the supply of looms. It is expected that it will still be highly dependent on Toyota Automatic Loom (6201.JP) in the next two years, as it accounts for more than 80% of the world's high-end looms.

Furthermore, since AI power-related PCBs require 3oz thick copper foil, which is only 1oz compared to traditional FR4, which is more time-consuming to produce, Citi anticipates that copper foil may become another bottleneck. In the field of AI infrastructure in China, Citi's preferences are Jiantao Laminate Board, Shengyi Technology (600183.SH), and Dazu Laser (002008.SZ) in that order.