Citigroup: Jiantao Laminate (01888) confirms an average price increase of 15% for thin-cloth copper-clad panels starting in October and reaffirms the “buy” rating

The Zhitong Finance App learned that Citi released a research report saying that as expected, Jiantao Laminate Board (01888) will increase the average sales price of #2116或以下的薄布覆铜面板 (CCL) for high-end applications such as 5G devices, automobiles, and smartphones by 15% starting in October. The bank reaffirmed the “buy/high risk” rating, and the target price remained at HK$96.

The bank pointed out that the latest cost increase for electronic glass cloth is also divergent. Thin cloth (#2116或 #1080) increased by about 2.5 yuan per meter (same below) every month in September and October, while heavy cloth (#7628) increased prices by about 1.5 to 1.6 yuan per meter during the same period; this price increase does not cover all CCL, but only for high-end products. The bank believes that as long as inflationary pressure continues, thick cloth #7628最终亦只是加价时间问题。

The bank estimates that after this price increase, the price of FR4 CCL will increase 15% to 370 to 390 yuan per sheet; #2116或以下约占该公司电子玻璃布总值约40%. The bank expects the company to raise the average sales price by about 10% in November or December, bringing the average sales price to about RMB 420 per sheet at the end of the year. Compared with the average spot price of RMB 150 per sheet at the end of 2025, the average spot price will soar by about 1.8 times; the gross margin is expected to rise sharply from 19.6% in 2025 to 36.9% in 2026, and the gross margin is expected to expand from about 31% in the first half of 2026 to about 40% in the second half of the year.

The bank said that the stock price of Jiantao Laminate fell by more than 15% in the past week due to negative macroeconomic news, but it was not a problem with the company itself; the bank is optimistic that there are more Jiantao Laminates than Jiantao Group (00148).