Kingboard Sees Unprecedented AI Boom as PCB Orders Surge Sevenfold
Crhk · 1 SOURCESabout 2 hours ago3 MIN
Summary
Kingboard Holdings (stock code: 00148.HK) and Kingboard Laminates (stock code: 01888.HK) are experiencing an exceptional surge in demand for AI-related products, with seven price increases implemented since the beginning of the year and severe supply shortages in Q2 . Executive Director Zhang Jiacheng stated that the company has capitalized on its vertically integrated supply chain to absorb high-quality clients and move toward high-end products, while competitors face material shortages and production stoppages . Chairman Zhang Guorong described current market conditions as nearly manic, attributing this to the rapid AI investment wave that has driven companies worldwide to heavily finance related infrastructure, causing severe upstream material supply-demand imbalances . The company expects the supply crunch for electronic glass yarn and copper-clad laminates to persist in the short term .
Key Points
- Kingboard's PCB and copper-clad laminate orders have been fully booked since early 2025, with seven rounds of price increases implemented
- Nvidia certification took six to seven years of research and development to complete, finally achieved this year
- The company pre-ordered over 2,500 Toyota weaving machines before the AI boom; new orders now require existing customer priority and face delivery timelines extending to 2030
- AI-grade glass yarn commands up to 1,700 yuan per kilogram compared to 19.5 yuan for traditional varieties, while production efficiency drops to just 30-40% of conventional output
- July 2024 profit exceeded HK$1 billion, with August shipments maintaining strong momentum and future months expected to show even better performance
- Kingboard Laminates will invest approximately HK$4 billion in capital expenditure this year, with customers pre-committing to capacity before machines arrive
- A new Qingyuan factory adding 21,000 tons of annual copper foil capacity is planned to address supply constraints
- The company's H1 net profit more than tripled year-on-year, though dividend growth was limited to 6% as funds are retained for expansion
Why It Matters
This AI-driven supercycle fundamentally differs from previous tech bubbles because structural demand spans not just servers but also power systems, energy storage, and power amplifiers, creating sustained multi-year order visibility . Once certified, customers face significant switching costs to change suppliers, effectively locking in Kingboard's market position and revenue streams for the foreseeable future .
This AI-driven supercycle fundamentally differs from previous tech bubbles because structural demand spans not just servers but also power systems, energy storage, and power amplifiers, creating sustained multi-year order visibility . Once certified, customers face significant switching costs to change suppliers, effectively locking in Kingboard's market position and revenue streams for the foreseeable future .