Citigroup released a research report stating that after the KB Laminates (01888) stock price fell by 17%, it reiterated its 'buy' rating and opened a 90-day upward catalytic observation on it, as the company is expected to announce earnings in mid-July; it is expected that the company's shareholder profit in the first half of this year will increase by 82% year-on-year to 768 million yuan, with a target price of HKD 12.5 and an expected compound annual growth rate of earnings per share from 2021 to 2026 of 60%.
The bank mentioned that the company's stock price has fallen by about 17% from the beginning of the year to the present, while the copper price has fallen by about 10% to $9,600 per ton during the same period. Citigroup's global commodity team expects that because the energy in mainland China is shifting from oil to electricity, such as electric vehicles, cecep solar energy, wind energy, etc., all have demand for copper, and the copper price will rise to $12,000 per ton in early 2025. In the past decade, the company's stock price has been closely linked to the cost of copper, which is the company's largest cost component.