Kingboard Chairman Kwok-yong Cheung Eyes 10 Billion Yuan Annual Profit as AI PCB Demand Surges
AM730 · 2 SOURCESabout 1 hour ago2 MIN
Summary
Kingboard Holdings (stock code: 0148) and subsidiary Kingboard Laminates (1888) have delivered outstanding first-half 2024 results, riding a wave of unprecedented demand for AI-related printed circuit board (PCB) materials. Chairman Kwok-yong Cheung described current market conditions as the best he has experienced in over 20 years of business, with customers urgently seeking supply . Both companies are now positioned to achieve annual profits exceeding 10 billion yuan, supported by severe supply shortages in the glass fabric sector and continued pricing strength across their product lines .
Key Points
- Kingboard Holdings reported first-half net profit of 2.71 billion yuan, up 5% year-on-year, with revenue of 29.13 billion yuan representing 35% growth
- Kingboard Laminates posted net profit of 2.89 billion yuan for the period, a 209% year-on-year increase, with revenue of 14.90 billion yuan climbing 55%
- The glass fabric business generated approximately 1 billion yuan in profit during the first half, representing a 280% increase from the same period last year
- One glass fabric product line's official price stands at 10-11 yuan per meter, yet black-market prices have surged to 17 yuan per meter due to extreme scarcity
- Toyota weaving machines dedicated to producing AI-grade thin glass fabric have fully booked production capacity through 2030, creating a significant barrier to competitor expansion
- PCB business revenue climbed 23% to 7.94 billion yuan, with roughly half of demand now linked to AI applications including servers, power supplies, and energy storage systems
- The group plans capital expenditure of approximately 9 billion yuan through 2028 to expand glass fabric capacity by 5% initially, then an additional 10%, fully funded by internal cash flow
Why It Matters
The explosive demand for AI-related PCB materials highlights how the artificial intelligence boom is creating ripple effects throughout Hong Kong and regional supply chains. Kingboard's ability to secure specialized equipment and maintain customer certification advantages positions it to capture outsized returns from this structural shift in electronics demand . For Hong Kong investors, the strong performance of these dual-listed companies demonstrates how traditional manufacturing conglomerates can reinvent themselves as key beneficiaries of next-generation technology infrastructure buildout.
The explosive demand for AI-related PCB materials highlights how the artificial intelligence boom is creating ripple effects throughout Hong Kong and regional supply chains. Kingboard's ability to secure specialized equipment and maintain customer certification advantages positions it to capture outsized returns from this structural shift in electronics demand . For Hong Kong investors, the strong performance of these dual-listed companies demonstrates how traditional manufacturing conglomerates can reinvent themselves as key beneficiaries of next-generation technology infrastructure buildout.