Jinwu Financial News | The stock price of Jiantao Laminate (01888) rose in early trading and remained high in the afternoon. As of press release, it was HK$9.1, up 5.08%, with a turnover of HK$101 million.
According to the news, Citi said that it has begun a 90-day upward catalytic observation of Jiantao's laminated board because it is expected that the company will release Yingxi in mid-July; the company's shareholders' profit in the first half of this year is expected to rise 82% year-on-year to 768 million yuan. Citigroup's global commodities team anticipates that as mainland energy shifts from petroleum to electric energy, such as electric vehicles, solar energy, and wind energy, all demand copper, copper prices will rise to US$12,000 per ton in early 2025. Over the past ten years, the company's stock price has been closely linked to the cost of copper, and the cost of copper is the company's largest cost component. The bank reaffirmed its “buy” rating. The target price is HK$12.5, and earnings per share are expected to grow at a compound annual rate of 60% from this year to 2026.
According to Open Source Securities, the company is a leader in the copper-clad plate industry. Along with the rise in copper prices in 2024, downstream demand is gradually picking up. Copper-clad sheets have room for flexible price adjustments. Combined with the cost advantages of vertical integration and scale effects of the supply chain, it is expected to drive the company's revenue and profit back to a growth trajectory in 2024. The first coverage gives a “buy” rating.