China PCB: Kingboard (1888.HK, NC): CCL and fiberglass fabric riding on AI trend with specification upgrade

We hosted a tour with Kingboard (1888.HK, Not Covered) in Hong Kong recently. Key discussions included (1) CCL and glass fabric pricing trend, (2) glass fabric loom supply, and (3) capacity expansion plan. Overall, management remains positive on the strong demand of CCL and upstream material to sustain in coming quarters, supported by the rising demand from AI products with specification upgrade, and some of non-AI capacity shifting to AI products. The company continues to expand its in-house capacity across the glass fabric, fiberglass yarn, copper foil, and CCL products, with growing exposure to AI products. The company raised the price of thin glass cloth during the mid of Oct, after multiple rounds of price increase in 9M26, and expects the strong pricing trend to continue ahead on tight upstream supply. Glass fabric loom supply remains tight; the company has secured the supply this year and expects to procure more glass fabric looms looking into 2027.