Citigroup's research report pointed out that Kingboard Holdings (00148.HK) underperformed expectations in the first half of the year, with revenue and net profit increasing by 9.1% and 8.4% respectively, reaching 20.415 billion yuan and 1.507 billion yuan, slightly lower than the bank's forecast of 20.741 billion yuan and 1.714 billion yuan.

Considering that the performance of the group is not ideal and the slowdown of China's macroeconomic situation may have an impact on consumer electronics and manufacturing, Citigroup has lowered Kingboard's profit forecast for 2024 to 2026 by 4% to 15%. The target price has been reduced from 30 to 27 yuan. However, Citigroup is more bullish on KB Laminates (01888.HK), believing that its dividend payout ratio is higher and the prospects for copper-clad laminates and printed circuit board market are relatively optimistic. It is expected that Kingboard Holdings' dividend payout ratio for the whole year of this year will be maintained at around 30%, maintaining a "buy" rating.