Hong Kong PCB stocks rally as CCL prices surge; KB Group up over 6% intraday

Shares of Hong Kong-listed printed circuit board (PCB) and related companies rallied on Tuesday, driven by multiple price hike signals across the supply chain and surging demand from the AI sector. Kingboard Group (00148.HK) surged over 6% in early trading.

As of press time, other notable gainers included:

• China Building Materials (03323.HK): +3.90%
• Kingboard Laminates (01888.HK): +3.73%
• Victory Giant Technology (02476.HK): +2.86%
• Han's CNC (03200.HK): +1.74%
• Kingboard Group (00148.HK): +1.44%

Cost Transmission Mechanism Fully Activated

According to multiple recent research reports, downstream PCB manufacturers have begun re-quoting prices following a sustained rise in upstream raw material costs. This marks the full activation of the cost transmission mechanism from upstream raw materials to midstream copper-clad laminates (CCL) and downstream PCBs. The market widely expects the third quarter of 2026 to be a substantive inflection point for profit improvement across the entire supply chain.

CCL Sector Sees "Rising Volumes and Prices"

The copper-clad laminate industry is currently experiencing a clear trend of "rising volumes and prices." Since December last year, major manufacturers including Kingboard and Nanya have issued consecutive price adjustment notices, with CCL prices rising 10% to 20% in a single week.

Notably, Kingboard Laminates, a CCL industry leader, has raised prices seven times this year, with cumulative increases for some key products exceeding 100%.

Upstream Raw Material Price Hikes Continue to Spread

On September 22, Jiangxi Hongruixing Technology Co., Ltd. announced a further increase in CCL ex-factory prices by 10%.

Prior to this, a price adjustment letter from fiberglass giant China Jushi also indicated price increases of 10% to 20% for some of its products, including FR-4 sheets.

Management Buybacks and IPO Activity

Amid improving fundamentals, company management has also demonstrated confidence through share purchases.

Separately, the Hong Kong IPO of Victory Giant Technology (03228.HK) has drawn significant attention from the supply chain. The company is offering a global sale of 72,944,300 H-shares, with a maximum offer price of HK$69.88 per share. The total fundraising is expected to reach up to HK$5.097 billion.

The IPO has attracted 14 cornerstone investors, including leading funds and key industry partners:

• CPE Redwood
• Zhongji Innolight (03308.HK)
• Han's CNC (03200.HK)
• Cambridge Technology (06166.HK)
• Singularity Asset
• E Fund Management
• Bosera International
• Seven Grand
• 3W Fund
• Tianhong Asset Management
• Ninety One Asia
• JPMAMAPL
• Barings
• Kingboard Group

These cornerstone investors have committed approximately US$310 million in total. Based on the upper end of the offer price, they would subscribe for approximately 34,788,400 shares, representing 47.69% of the total shares offered in the global sale.

(Source: Cailianshe)