Kingboard Holdings Ltd (HKEX: 00148) shares climbed nearly 5% in morning trading, rising 4.85% to HK$41.12 with turnover reaching HK$727 million.

The company recently announced that it expects net profit for the six months ending June 30, 2026 to exceed HK$2.7 billion, representing an increase of more than 4% compared to the same period in 2025.

According to the announcement, the anticipated profit growth is primarily driven by a significant surge in the reported segment profit of the company's copper-clad laminate (CCL) division, which jumped over 200% year-on-year. This strong performance was partially offset by losses recorded in the group's investment business segment during the reporting period.

The market continues to experience persistent supply shortages for CCL and its upstream materials, including electronic glass fiber yarn, electronic glass fiber fabric, and copper foil. As a result, unit prices for these products have risen notably, and CCL sales volumes have increased compared to the same period in 2025, contributing to the substantial profit growth in the CCL segment. The supply-demand imbalance for electronic glass fiber yarn, electronic glass fiber fabric, copper foil, and CCL has become more severe in the current market environment.

The board of Kingboard Holdings believes that the profit growth also reflects the strength and completeness of the group's vertically integrated business model.