UBS: Upgrading the target price of Jiantao Laminate Board (01888) to HK$66, the profit estimate will increase by up to 36% from this year to the next

The Zhitong Finance App learned that UBS released a research report stating that the target price of the Jiantao Laminate Board (01888) was raised from HK$58 to HK$66, and the rating remained “buy.” UBS raised its profit forecast by 36%, 32% and 31% from 2026 to 2028, reflecting an increase in the average selling price of copper clad plates, the acceleration of the progress of AI glass cloth and HVLP copper foil, and an increase in gross margin driven by vertical integration advantages.

Jiantao's mid-term profit surged 209% year on year to 2.9 billion yuan, and gross margin reached 30.7%, an increase of 12.3 percentage points over the same period last year, and 2.1 percentage points higher than the bank's expectations. It mainly benefited from the cost advantage of vertical integration and the increase in the average sales price of copper clad plates and upstream materials. Revenue for the period increased 55% year over year to HK$14.9 billion, 7% lower than the bank's forecast, but operating expenses control and operating leverage were better than expected. The core copper clad plate and upstream business had an operating profit of 3.8 billion yuan in the first half of the year, and the operating profit margin increased to 25.9% from 12.3% in the same period last year. The management is optimistic about the sustainability of the copper clad plate upward cycle, and also revealed that it has locked in 50% of Toyota automatic loom orders for the next two years.