Citigroup's research report pointed out that kb laminates (01888.HK) saw a 6.5% increase in revenue in the first half of this year, and a 72.4% increase in net profit attributable to shareholders, slightly lower than the bank's earlier forecast.

Due to the slower-than-expected sales growth upper limit cycle after the industry downturn cycle from 2022 to 2023, the bank has downgraded the profit forecast for kb laminates for the fiscal years 2024 to 2026 by 9% to 12%, and at the same time lowered its target price from HK$12.5 to HK$11.5, reiterating its 'buy' rating.

In addition, Citigroup expects kb laminates to see a 13% increase in revenue in the second half of this year, and an 80% increase in profit. This is mainly due to the low base effect, the increase in profit margin driving gross margin, as well as the favorable impact of the mainland automobile and home appliance 'trade-in' policy.

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