Kingboard Chemical 0148

[winston]

Not vested. From Dr. Check, The Standard HK

Laggard Kingboard faces vertical challenge

With the Hang Seng Index hitting a new high for the year yesterday, it's time to consider a laggard, Kingboard Chemical (0148), the world's leading laminates manufacturer.

It also makes printed circuit boards, chemicals, copper foil and liquid crystal displays.

The firm, which employs a vertical- integration production mode, saw its first-half revenue dive 27 percent to HK$9 billion.

Kingboard had a 14 percent global market share of laminates last year. It is also the mainland's biggest producer of printed circuit boards.

Orders are rising and cheaper raw materials have helped offset the lower sale prices of products.

The printed circuit board division has also seen stronger orders and higher capacity utilization since the end of the first quarter.

Citigroup has a "buy" call and a target price of HK$32.70 as upward momentum was seen in orders, demand and selling prices in the third quarter.

Kingboard shares plunged 83 percent from their peak of HK$54.2 in 2007 to a low of HK$8.80 in October. The stock closed at HK$27.95 yesterday or 11 times 2009 expected earnings - a reasonable level.

http://www.thestandard.com.hk/news_deta ... 90918&fc=8

[winston]

Chips are up for Kingboard by Dr. Check, The Standard HK

Surging demand has led to a 20 percent year-on-year jump in sales for Taiwan Semiconductor - the world's largest contract semiconductor manufacturer.

Kingboard Chemical Holdings (0148) should also benefit from the rising demand for microchips.

Kingboard is the world's top laminate maker.

Orders for laminates have been encouraging since the end of the first quarter, contributing a HK$872 million profit in the first half

Kingboard is also the mainland's biggest producer of printed circuit boards.

Orders have been flowing in and the PCB division contributed HK$217 million in profits.

Chemicals are another major revenue earner, contributing HK$239 million to first-half profit.

Kingboard will benefit from a series of economic stimulus measures introduced by Beijing, with subsidies for electronic products purchased in the rural area particularly likely to have a positive effect on its growth prospects.

Its net profit fell 37 percent to HK$983.3 million in the first half, but the firm's net gearing ratio was healthy at 22 percent.

Credit Suisse upgraded Kingboard's earnings forecast for the coming three years by 4 percent to 23 percent and put a target of HK$32.70 on the stock.

The stock closed at HK$29.90 on Friday. Dr Check recommends investors keep an eye out for it when it slides to around HK$28.

http://www.thestandard.com.hk/news_deta ... 91012&fc=1

[peter]

Kingboard copper in STI is the sister company. It provides the copper foil to make PCB. Not sure if the prospect is equally good as the sister. Semicon is certainly recovering now

[kennynah]

Semicon is certainly recovering now

yeah....for the rest of the world that is producing semicon products.... what about your chartered fully-con? MFB !

[peter]

I do not consider Chartered a normal semicon company. Has not been behaving like one for the past at least 10 years. Normal semicon has cycles of up and down, chartered has only down cycles.

[winston]

Not vested

DJ MARKET TALK: KB Chemical +1.2%; Still Appears Undervalued

1041 [Dow Jones] Kingboard Chemical (0148.HK) valuation still appears undemanding despite recent gains, stock last +1.2% at HK$38.90, trades at 9.6X FY10 earnings based on Thomson Reuters forecast of FY10 net profit of HK$3.45 billion, that's before taking account for HK$912 million disposal gain expected from selling 225 million Kingboard Laminates (1888.HK) shares, trimming stake in unit to 66.02% from 73.52%.

KBL down 2.1% at HK$7.82 but stays above placement price of HK$7.60, is most heavily traded HK stock with HK$1.74 billion. KBC volume solid at HK$26.9 million, likely good chance for stock to test psychological HK$40 short term, level last visited in May.


Source: Dow Jones Newswire

[winston]

Not vested

DJ MARKET TALK: JP Morgan Cuts Kingboard Chemical Target To HK$57
July 21, 2010

1055 [Dow Jones] STOCK CALL: JP Morgan Keeps Kingboard Chemical (0148.HK) at Overweight, but cuts target to HK$57 vs HK$65, to reflect lower margins for chemicals business, lower assumption of property revaluation of office building in Guangzhou.

House cuts FY10 net profit by 14.4% to HK$3.77 billion, FY11 net profit by 8.1% to HK$4.21 billion.

Says, for company which is largest producer of laminates, printed circuit boards (PCBs) in China, near-term key driver for sales will be 15% rise in capacity for laminates to 9.8 million sheets per month, 15% rise in double, multi-side PCB to 12.7 million sq. ft in 2010.

Adds, development of new PCB plant in Yangzhou could lift current capacity by more than 50% over next 2-3 years.


Source: Dow Jones Newswire

[winston]

Not vested

DJ MARKET TALK: CLSA Starts KB Chemical At Buy; HK$56.90 Target

1414 [Dow Jones] STOCK CALL: CLSA starts Kingboard Chemical (0148.HK) at Buy, pegs SOTP-based target price at HK$56.90, which implies only 11X FY11 P/E, 1.6X P/B.

Says while Kingboard Laminate (1888.HK) remains attractive business, thinks "market has yet to fully value Kingboard Chemical's other businesses" - PCB, chemicals, property development.

As return-on-invested-capital on these businesses forecast to rise, believes re-rating will happen, stock's current 31% discount to NAV will narrow. Stock +0.1% at HK$41.40 midday.

Source: Dow Jones Newswire

[winston]

Not vested

DJ MARKET TALK: KB Chemical To Benefit From Strong Prices - UOB
Oct 25, 2010

0917 [Dow Jones] STOCK CALL: UOB KayHian keeps Kingboard Chemical (0148.HK) at Buy with HK$47.07 target based on 11.0X FY10 P/E.

"We remain positive on KBC as it is one of the key beneficiaries of economic growth in China"; notes stock trading at 7.4X 2010 P/E, looks undemanding and lower than that of international peers.

Says KBC beneficiary of strong chemical prices; notes methanol prices hit US$466/ton, or CNY3,100/ton, in some provinces in China, with recent electricity control major reason; apart from methanol, prices of other chemicals such as chlor-Alkali, caustic soda also went up substantially.

"KBC's chemical operation has relatively higher upside risk given strong methanol and phenol/acetone prices which should offset the impact of softening of glass fabric prices."


Source: Dow Jones Newswire

[winston]

not vested

KINGBOARD CHEM (00148.HK) target lowered to $25, rated Overweight - JPM
2014-03-25

KINGBOARD CHEM (00148.HK) -0.100 (0.698%) Short selling $1.01M; Ratio 6.039% is one of the largest manufacturers of laminates, PCBs and industrial chemicals in China, but its sales and profit margin was worse than expected, mainly due to the price drop at the end of last year, JP Morgan said in a report.

The demand for the company's core products is still full of challenge, while its PCBs in overseas car market and local smartphone market becomes part of the bright spot.

Therefore, the broker reduced the company's target price from $30 to $25, but still kept the rating at Overweight.

Source; AAStocks Financial News