Citigroup: Raise KINGBOARD HLDG(00148) target price to HK$48 with a "buy" rating.

Citibank released a research report stating that the target price of KINGBOARD HLDG (00148) has been raised from 45 Hong Kong dollars to 48 Hong Kong dollars, with a rating of "buy". KINGBOARD HLDG's revenue in 2025 is expected to increase by 5% to 45.375 billion Hong Kong dollars, in line with market expectations. Net profit is expected to rise by 170% to 4.402 billion Hong Kong dollars, higher than the previous profit guidance of over 4.32 billion Hong Kong dollars, mainly due to higher than expected investment income of 2.635 billion Hong Kong dollars. Therefore, adjusted core net profit (excluding revaluation losses and investment income) is expected to decrease by 4% year-on-year to 2.635 billion Hong Kong dollars. In addition, due to the recent placement of KB LAMINATES (01888) shares (resulting in reduced profit contribution), the bank has lowered its core profit forecast for the company in 2026 by 11%. However, with multiple upstream artificial intelligence materials and chemical projects about to start operating and contribute to the first year's income, the bank has raised its profit forecast for 2027 by 4%. At the same time, it has added a profit forecast for 2028, meaning that by 2028, the three-year compound annual growth rate of core profit will reach 24%, reaching 5.029 billion Hong Kong dollars. Based on the pure AI upstream material layout, the bank still believes that KB LAMINATES is superior to KINGBOARD HLDG, expecting its valuation to be further re-evaluated.