Citi: Lowered the target price of Jiantao Laminate (01888) to HK$92 and adjusted the rating to “Buy/High Risk”

The Zhitong Finance App learned that Citi released a research report saying that the Jiantao Laminate Board (01888) has dropped by more than 60% since its June high. Now is the time to re-enter the market. Profit growth is expected to accelerate in the second half of this year. The bank expects the year-on-year increase in net profit to accelerate to 2.8 times in the second half of the year (lighting up about 2 times the year-on-year increase). Based on a price-earnings ratio of 22 times (1.5 standard deviations from the historical average), the target price was lowered from HK$130 to HK$92, a decrease of about 29%, and the rating was adjusted from “buy” to “buy/high risk”.

According to the bank, the company is concerned that there are three positive catalysts, including (1) the average sales price of copper clad plate (CCL) is expected to soar by about 10% to 15% in August after the cost of electronic fiberglass cloth became insatiable; (2) after announcing the results on August 24, the market focus will shift to profit growth expectations for the second half of this year heating up faster than expected; (3) Construction Board launched the T-glass fiber cloth (T-cloth) production line in August.

According to the report, considering the company's loss, and growing market concerns about AI capital expenses of major data center operators and Nvidia (NVDA.US) “closed-loop financing,” the 2026-28 earnings estimate was lowered by between 9% and 14%.