Kingboard Laminates (1888) saw its net profit for the first six months surge by 209 percent to HK$2.89 billion, driven by soaring demand and prices for electronic materials related to artificial intelligence.
Revenue jumped 55 percent to HK$14.9 billion, with the interim dividend up 87 percent to 28 HK cents per share.
Turnover for the laminates division increased by 56 percent to HK$14.77 billion.
Meanwhile, the group recorded a monthly record profit of about HK$1.1 billion in July as prices of laminates and its upstream materials, including electronic fibreglass yarn and fabric and copper foil, have continued to surge, delivering substantial returns for the Group.
Management noted that a shift in production capacity towards products related to artificial intelligence caused a severe shortage of traditional electronic fiberglass yarn and fabric. This drove a 280 percent profit increase in the fiberglass business to roughly HK$1 billion, with product price hikes accelerating in the second quarter.
The company expects the tight imbalance between supply and demand in the laminates sector to persist in the near term amid the accelerating commercialization of artificial intelligence. It plans to leverage its vertically integrated supply chain to capture premium market share and drive further growth in the second half of the year.
Meanwhile, its parent company Kingboard (0148) reported a 5 percent rise in net profit for the first half to HK$2.71 billion.
Its revenue grew 35 percent to HK$29.13 billion, with the interim dividend rising 6 percent to 73 HK cents.
Shares of Kingboard Laminates closed at HK$35.10, down 5 percent, while parent Kingboard closed at HK$45.58, dropping 2.6 percent.
