Kingboard Laminates profit rockets 357.3% to $3.4b in H1 2021
The rebound of the electronics consumables led to increased demand in the laminates industry.
Hong Kong Exchange-listed Kingboard Laminates Holdings Limited saw a 357.3% year-on-year (YoY) increase in profit in the first half of 2021 to $3.4b from $732.8m in the same period last year.
Kingboard Laminates’ revenue also surged 105% YoY in the first half to $13.9b from $6.8b in the first six months of 2020.
“During the period, the pace of global economic recovery accelerated, fuelling a strong rebound in electronic consumables which helped drive demand growth for the laminates industry,” Kingboard Laminates Chairman Cheung Kwok Wa said.
Cheung said sales of computers and servers remained robust due to the increased application for distance work and online meetings, whilst home appliances also saw a significant surge in sales a people spent more time at home.
The automotive industry, meanwhile, also saw growth due to the new energy vehicle segment and smart upgrades to cars, he said.
“The group captured these market opportunities to generate strong growth in laminates sales, whilst fully unlocking the potential of its vertical production model to significantly lift profit margins,” he said.
The revenue from the laminates division rose 109% YoY to $13.8b in the first half and saw its output volume grow by 33% to a total of 64 million sheets compared to the first six months of 2020, due to opportunities from successful forays into new segments and progress in its product mix enhancement, and increase in the proportionate sales of high-end and high-value-added products.
The electronics industry is also banking on hot demand for electronic consumables in the second half, with new growth drivers from the new energy vehicle and mini-LED segments.
The group said it is accelerating its capacity investments, noting that the newly completed laminates plants in Shaoguan, Guangdong Province has been fully commissioned, adding a monthly capacity of 1.2 million sheets of glass epoxy laminates.
It said it will upgrade some of its existing facilities of paper laminates and will target to expand the proportionate sales of prepreg made from glass fabric and epoxy resin. It will also leverage its technology lead to speed up product portfolio enhancement to meet market demands.
Its property division, meanwhile, was focused on completing existing projects. Pre-sales performance was satisfactory, with a decreased handover of units. Revenue from the segment dropped 51% YoY to $65m.