KB Laminates (01888) surged 5.01% during intraday trading on Thursday, extending its rally following a strong session in the semiconductor and PCB sectors.

The move came after UBS and Bank of America simultaneously initiated coverage on the stock with “Buy” ratings, setting target prices of HK$58 and HK$53 respectively. UBS highlighted that AI-driven demand is tightening supply in copper-clad laminates (CCL) and upstream raw materials, positioning KB Laminates—the world’s largest traditional FR4 CCL supplier—as a primary beneficiary. The bank also noted that the roughly 60% pullback from the June high offers an attractive entry point, and that the company’s expansion into AI-related upstream materials provides new structural growth opportunities beyond the current CCL upcycle.

Additionally, the company recently raised FR-4 CCL and PP prepreg prices by 10%, and issued a profit alert forecasting first-half net profit exceeding HK$2.8 billion, representing a year-over-year increase of over 200%.