Citigroup reiterated its buy rating of 00148.HK, which raised its target price from 17 yuan to 19 yuan, implying a price-to-earnings forecast of 10 times this year, and the bank expects earnings from its real estate and laminate businesses to potentially rise in the coming years.

The bank reported that Kingboard Chemical's first-quarter pre-sale contract sales reached 4.8 billion yuan, exceeding the annual sales target of 4.5 billion yuan. in view of the improvement in the mainland property market, especially in second-and third-tier cities, it is estimated that the group will raise its annual contract sales target to 6 billion yuan. the group is expected to generate more cash flow, and it is expected that management is likely to use some of the funds for mergers and acquisitions of laminate business.