《Investment Insights》Kingboard Holdings (00148) is a global enterprise with a complete PCB industry chain, covering everything from upstream electronic yarn, copper foil, epoxy resin, to copper-clad laminates and finished PCBs. Against the current backdrop of severe shortage of electronic fiberglass cloth, where "yarn is hard to come by," copper-clad laminate manufacturers lacking upstream integration have been forced into partial shutdowns. In contrast, Kingboard, leveraging its self-sufficiency, not only secures production but also directly converts its cost advantages into profits. The Group's market share in copper-clad laminates has ranked first globally for 20 consecutive years.
*Accelerating multiple key projects at full speed, targeting the AI high-end copper-clad laminate specialty materials segment*
This vertically integrated model has built extremely high competitive barriers. It is understood that high-frequency, high-speed glass yarn and glass cloth products, after receiving customer certification in March 2025, have entered mass production, with market demand far exceeding expectations—products are sold out immediately upon leaving the factory. In recent years, Kingboard has been accelerating multiple key projects, all targeting the AI high-end copper-clad laminate specialty materials segment.
First, regarding electronic-grade fiberglass yarn, the Shaoguan project with an annual output of 70,000 tonnes was ignited and commenced production in June 2026, three months ahead of schedule; among the eight specialty electronic fiberglass yarn furnaces in Qingyuan, two will commence production in the second half of 2026, covering products such as first/second-generation low-dielectric, low-expansion, and quartz electronic fiberglass yarn, targeting the high-frequency, high-speed, and high-end packaging substrate markets.
As for electronic fiberglass cloth, the Group's Shaoguan project with an annual output of 95 million meters will achieve full production in the third quarter of 2026; the Nansha project with an annual output of 150 million meters is scheduled to commence production in the third quarter of 2027. The number of high-efficiency weaving machines will gradually increase from 3,333 units in 2025 to 5,833 units in 2028, lifting the total annual capacity to 1.05 billion meters, of which the annual capacity of specialty electronic fiberglass cloth will reach 100 million meters.
In addition, regarding copper foil, the Qingyuan project with an annual output of 21,000 tonnes of high-frequency, high-speed, low-signal-loss RTF and HVLP copper foil will commence production in the third quarter of 2027.
Furthermore, Nansha's five-year expansion plan will involve a total investment of RMB 1.5 to 2 billion yuan, covering 50,000 tonnes/year of high-performance phenolic resin, 180 million meters of high-end electronic cloth, and multiple high-frequency, high-speed electronic chemicals production lines, expected to generate approximately RMB 2 billion yuan in additional annual output value upon full production.
The core logic behind this series of expansions lies in the fact that the expansion cycle for high-end materials lasts 18 to 24 months, while AI demand is growing exponentially—early movers will fully benefit from the pricing premium brought by supply-demand mismatches.
*Tight supply-demand situation for copper-clad laminates to persist into next year or longer, valuation remains attractive*
With sustained industry prosperity and an ongoing tight supply-demand situation, the demand for high-end copper-clad laminates in AI servers is 3 to 5 times that of traditional servers. The tight supply-demand situation for copper-clad laminates is expected to persist into 2027 or beyond. Therefore, it is estimated that the AI-driven super cycle will remain in a high-growth phase over the next 3 to 5 years.
From the Group's financial performance in the first half of 2026, turnover reached HK$29.131 billion, a 35% year-on-year increase. The core copper-clad laminate division achieved turnover of HK$15.118 billion, a substantial 55% year-on-year growth. Profit in July 2026 alone was approximately HK$1.1 billion, a record high for the Group.
Overall, Kingboard Holdings' core investment value lies in the cost barrier built by vertical integration, giving it significantly higher profit elasticity than peers during industry shortage cycles; the concentrated release of AI material capacity provides a clear growth path for the coming years; and the current valuation remains attractive relative to earnings growth. Against the macro backdrop of continuously accelerating AI computing infrastructure development, Kingboard, as the "chain leader" of the copper-clad laminate industry chain, is poised to continue benefiting from the industry's high prosperity cycle. With the current share price having pulled back significantly from its highs, the current level is more attractive compared to international peers. Investors are advised to accumulate gradually at current levels for medium-term holdings, with a medium-term target of HK$110 and a stop-loss below HK$45. Pan Tieshan, Investment Director, Hong Cheong Capital (The author does not hold relevant shares; clients hold relevant shares) (This column is published every Thursday)
*Articles published in ETNet, whether signed or unsigned, represent the authors' personal opinions and do not reflect ETNet's stance. ETNet serves as a platform providing free speech.
*Accelerating multiple key projects at full speed, targeting the AI high-end copper-clad laminate specialty materials segment*
This vertically integrated model has built extremely high competitive barriers. It is understood that high-frequency, high-speed glass yarn and glass cloth products, after receiving customer certification in March 2025, have entered mass production, with market demand far exceeding expectations—products are sold out immediately upon leaving the factory. In recent years, Kingboard has been accelerating multiple key projects, all targeting the AI high-end copper-clad laminate specialty materials segment.
First, regarding electronic-grade fiberglass yarn, the Shaoguan project with an annual output of 70,000 tonnes was ignited and commenced production in June 2026, three months ahead of schedule; among the eight specialty electronic fiberglass yarn furnaces in Qingyuan, two will commence production in the second half of 2026, covering products such as first/second-generation low-dielectric, low-expansion, and quartz electronic fiberglass yarn, targeting the high-frequency, high-speed, and high-end packaging substrate markets.
As for electronic fiberglass cloth, the Group's Shaoguan project with an annual output of 95 million meters will achieve full production in the third quarter of 2026; the Nansha project with an annual output of 150 million meters is scheduled to commence production in the third quarter of 2027. The number of high-efficiency weaving machines will gradually increase from 3,333 units in 2025 to 5,833 units in 2028, lifting the total annual capacity to 1.05 billion meters, of which the annual capacity of specialty electronic fiberglass cloth will reach 100 million meters.
In addition, regarding copper foil, the Qingyuan project with an annual output of 21,000 tonnes of high-frequency, high-speed, low-signal-loss RTF and HVLP copper foil will commence production in the third quarter of 2027.
Furthermore, Nansha's five-year expansion plan will involve a total investment of RMB 1.5 to 2 billion yuan, covering 50,000 tonnes/year of high-performance phenolic resin, 180 million meters of high-end electronic cloth, and multiple high-frequency, high-speed electronic chemicals production lines, expected to generate approximately RMB 2 billion yuan in additional annual output value upon full production.
The core logic behind this series of expansions lies in the fact that the expansion cycle for high-end materials lasts 18 to 24 months, while AI demand is growing exponentially—early movers will fully benefit from the pricing premium brought by supply-demand mismatches.
*Tight supply-demand situation for copper-clad laminates to persist into next year or longer, valuation remains attractive*
With sustained industry prosperity and an ongoing tight supply-demand situation, the demand for high-end copper-clad laminates in AI servers is 3 to 5 times that of traditional servers. The tight supply-demand situation for copper-clad laminates is expected to persist into 2027 or beyond. Therefore, it is estimated that the AI-driven super cycle will remain in a high-growth phase over the next 3 to 5 years.
From the Group's financial performance in the first half of 2026, turnover reached HK$29.131 billion, a 35% year-on-year increase. The core copper-clad laminate division achieved turnover of HK$15.118 billion, a substantial 55% year-on-year growth. Profit in July 2026 alone was approximately HK$1.1 billion, a record high for the Group.
Overall, Kingboard Holdings' core investment value lies in the cost barrier built by vertical integration, giving it significantly higher profit elasticity than peers during industry shortage cycles; the concentrated release of AI material capacity provides a clear growth path for the coming years; and the current valuation remains attractive relative to earnings growth. Against the macro backdrop of continuously accelerating AI computing infrastructure development, Kingboard, as the "chain leader" of the copper-clad laminate industry chain, is poised to continue benefiting from the industry's high prosperity cycle. With the current share price having pulled back significantly from its highs, the current level is more attractive compared to international peers. Investors are advised to accumulate gradually at current levels for medium-term holdings, with a medium-term target of HK$110 and a stop-loss below HK$45. Pan Tieshan, Investment Director, Hong Cheong Capital (The author does not hold relevant shares; clients hold relevant shares) (This column is published every Thursday)
*Articles published in ETNet, whether signed or unsigned, represent the authors' personal opinions and do not reflect ETNet's stance. ETNet serves as a platform providing free speech.
