Bank of America Securities: Initiates coverage on Kwan Tai Laminated Board (01888.HK) with a "Buy" rating and a target price of HKD 53.

According to a report from Bank of America Securities, it has initiated coverage on Kingboard Laminates Holdings (01888.HK) with a "Buy" rating and a target price of HK$53, which corresponds to a projected price-to-earnings ratio of 12 times for the second half of this year through the first half of next year, exceeding the historical trading average (9 times) by 0.5 standard deviations. The firm stated that the company is currently trading at an estimated forward P/E ratio of about 7 times, which is below the historical average. The firm believes that Kingboard Laminates will benefit from price increases in copper clad laminate (CCL) and the spillover effect of high-end fiberglass fabric shortages, leading to significant profit expansion. It expects the companys revenue and earnings to achieve compound annual growth rates of 44% and 62%, respectively, between 2026 and 2028. The firm projects earnings per share for 2026, 2027, and 2028 to be HK$2.67, HK$6.16, and HK$7.01, respectively.