JPMorgan Chase & Co reported that the overweight rating of Kingboard Chemical (00148.HK) was maintained and the target price was raised from 17 yuan to 20 yuan. Kingboard Chemical made a profit earlier, with an expected medium-term net profit increase of not less than 70%, a strong group balance sheet, and a sharp increase in property sales revenue after the completion of its tenement project and delivery to customers, raising the 2016-17 earnings forecast by 56% and 2%.

The bank pointed out that the Group's real estate business seemed to be undervalued and that Kingboard Chemical had a large investment and property development portfolio (over $30 billion), which might exceed the value of the whole group. Importantly, the group has more than 60 plants, including laminates, printed circuit boards and chemicals, accounting for 70 to 80 per cent of EBIT.

Motors maintains the Group's core business, Laminates, which is believed to be robust and profitable, and expects printed circuit boards and chemicals to break even.