Electronics market demand drives up Kingboard Holdings profit

The company’s 2020 profit is 37% higher year-on-year.

Kingboard Holdings Limited and its subsidiaries posted an underlying profit of $4.68b in 2020, reflecting an increase of 37% YOY, linked to the demand on electronic products.

Its reported net profit is $4.70b, 52% higher that the 3.09b recorded in the previous year. The total revenue of the company, meanwhile, rose 6% to $43.5b this year.

“We teem with confidence in the group’s development in 2021, and expect that the business growth momentum will remain strong throughout the year,” said Kingboard Holdings chairman Paul Cheung Kwok Wing. “With a number of large-scale investment projects currently in the pipeline, the group anticipates its business volume to double within the next decade.”

The board has proposed a final dividend of HK 100 cents per share with a special final dividend of HK 100 cents per share.

The company attributed the increase to the demand on electronic products which picked up in the second half of the year, leading to a substantial rise in the monthly shipment volume for Kingboard Laminates products.

The segment revenue, including inter-segment sales, went up by 1% to $16.59b whilst earnings before interest, tax, depreciation and amortization surged by 40% to $3.9b.

The division plans to increase capacity for FR4 (epoxy glass laminates) to 800,000 sheets per month, build new capacities for upstream materials, such as copper foil, glass yarn; and glass fabric.

Further, the increase in sales of devices necessary for remote work setup fueled demand for high-end, high density inter-connected printed circuit boards. The division revenue jumped 10% to $10.55b.

Revenue in the property division also saw an increase of 153% to $8.33b, of which $7.21b were from residential projects, whilst the other $1.11b were rental income. The chemical products of the company, however, declined 21% to $10.5b.