KB Laminates' stock price surged 6.94% during intraday trading, extending its recent strong performance in the market.

The rally is driven by multiple factors including supply chain disruptions and the company's strong pricing power. A conflict in the Middle East has caused production halts in Saudi Arabia's Jubail industrial zone, disrupting approximately 70% of global high-purity PPE resin supply - a critical raw material for high-end copper clad laminates (CCL) that KB Laminates produces.

Additionally, the company recently completed its fourth price hike this year, raising board material prices by 10% and PP products by 20%, with cumulative increases exceeding 40%. Analysts at Citi expect the company to issue a strong profit alert for its first-half results and have raised their target price for parent Kingboard Holdings while maintaining a Buy rating. The bank also flagged potential supply allocation shortfalls in the third quarter as AI demand accelerates while CCL capacity growth remains limited.