Citibank: The valuation of Kwan Tong Laminated Board (01888.HK) is attractive, reiterating a "Buy" rating. It is expected that CCL producers will initiate a new wave of price increases.

According to Zhituo Finance APP, Citibank has released a research report stating that the latest commodity data indicates the average sales price of the 1080 series electronic-grade fiberglass cloth rose by 17% to 18% month-on-month in August, marking the largest increase since the beginning of the year. The cumulative price increase of electronic-grade fiberglass cloth this year has reached between 118% and 165%. It is believed that strong demand for AI is driving the demand for certain products, leading manufacturers to shift their production capacity from non-AI products to AI fiberglass cloth, further exacerbating the tight supply in the industry. The bank considers the current valuation of Jian Tao Laminates (01888.HK) attractive, only equivalent to an estimated price-to-earnings ratio of about 7 times for next year, with a forecasted dividend yield exceeding 7% next year. It maintains a "Buy" rating and a target price of HKD 130, corresponding to an estimated price-to-earnings ratio of about 28 to 29 times for 2027.