According to the latest report of Japan Marketing Survey Co., Ltd., the Group continued to maintain No.1 position in the global laminate market with a market share of 11.5% up from 9.9% a year ago. Mr Cheung Kwok Wa, Chairman of the Company said: “Our unrivaled position as the largest global laminate producer certainly enables the Group to tap into the future earnings growth opportunities. Our remarkable performance both in revenue and profit was fueled by organic growth and the effort of our highly committed management team.”
Spearheaded by robust growth in the electronics industry, average selling price of laminate has resumed an upward trend from the beginning of second quarter of year 2007. The Group’s paper laminate maintained a steady order book throughout the first half of year 2007 and business on glass epoxy laminate saw remarkable profitability growth as the Group continued to adjust its product mix and enhance profit contribution from higher value-added products.
The Group’s new glass epoxy laminate plant in Jiangyin, Jiangsu province with monthly production capacity of 200,000 sheets commenced production in April 2007. This development shall enhance the Group’s presence in eastern China as many global printed circuit board (“PCB”) customers which the Group serves have stepped up either their marketing initiatives or set up their production facilities in this emerging electronics industry hub. The Group also expanded its production capacity in Lianzhou copper foil plant. This new facility has added another 300 tonnes monthly capacity of copper foil after progressing to mass production in the first half of year 2007. The Group’s highly vertical integration business model would assure an ongoing supply of quality upstream component materials required for its laminate products.
Mr. Cheung concluded: “The Group’s overall business for laminates started with positive momentum in the second half of 2007 as the electronics industry remained buoyant and the continued trend of major US, European and Japanese OEMs outsourcing their components requirement to lower-cost Asian manufacturers, particularly China, is expected to drive greater demand for PCB production. These would translate into higher demand for the Group’s laminates and upstream component materials. In order to capture additional market share in China and to gain new customers in emerging markets such as India and Vietnam, the capacity of glass epoxy laminate and other upstream component materials will continue to expand in the second half of year 2007. While the traditional laminate products would continue to provide a steady income stream, the Group is also making headway to invest in high performance laminate products which can be used to manufacture more sophisticated electronic devices. The Group continues to strengthen the alliances with PCB affiliates of the parent company so as to seize opportunities from the growing regional demand for more advanced laminate products. These higher performance laminate products would command higher margin and will set to become the next growth avenue for the Group.”
Financial Highlights| Six months ended June 30, | ||
| 2007 | 2006 | |
| HK$'million | HK$'million | |
| Turnover | 4,806.3 | 3,838.7 |
| Profit attributable to equity holders of the Company | 903.1 | 803.9 |
| Basic Earnings per share | 30.1 cents | 28.4 cents |
| Interim dividend per share | 10 cents | NA |
About Kingboard Laminates Holdings Limited
Kingboard Laminates Holdings Limited (HKEx: 1888) is a leading vertically-integrated electronics materials manufacturer, specializing in the production of laminates, a fundamental material ultimately used for the production of all kinds of electronic products. The Company is the global leader in rigid laminates, with a strategic network of 18 manufacturing facilities in the PRC. It was successfully listed on the Main Board of the Stock Exchange of Hong Kong in December 2006.