| Six months ended 30 June | change | ||
| 2010 | 2009 | ||
| HK$'million | HK$'million | ||
| Revenue | 6,521.3 | 3,956.9 | +65% |
| EBITDA | 1,824.8 | 1,245.2 | +47% |
| Profit before tax | 1,430.9 | 853.7 | +68% |
| Net profit attributable to shareholders | 1,281.1 | 818.3 | +57% |
| Rarnings per share | HK42.7 cents | HK27.3 cents | +57% |
| Interim dividend per share | HK16.0 cents | HK10.0 cents | +60% |
| Net asset value per share | HK$3.07 | HK$2.60 | +18% |
| Dividend payout ratio | 37% | 37% | |
| Net gearing | 14% | 2% | |
Hong Kong, August 20, 2010 - The world’s largest laminate manufacturer Kingboard Laminates Holdings Limited (the “Company”) (HKEx: 1888) and its subsidiaries (the “Group”) today announced that for the six months ended 30 June 2010, Group revenue increased by 65% to HK$6,521.3 million, while earnings before interest, tax, depreciation and amortization (“EBITDA”) surged by 47% to HK$1,824.8 million and net profit rocketed 57% to HK$1,281.1 million. The directors of the Company have resolved to recommend an interim dividend of HK$16 cents per share.
Kingboard Laminates Chairman Mr. Cheung Kwok Wa said: “According to the latest report issued by Prismark Partners LLC, the Group maintained its No.1 position in the world for the fifth consecutive year with a global market share of 14.6% in 2009. Our visionary and forward-looking management team strategically stocked up key upstream materials in 2009. Demand for electronic products rebounded sharply in the first half of 2010 (“1H 2010”) and resulted in tight market supply of glass fabric and glass yarn. Benefited from the Group’s vertically-integrated business model with a steady and abundant supply of upstream materials, the Group was able to seize business opportunities arising from the strong global demand recovery for electronic products in addition to robust domestic market in China. As a result, the Group achieved record-breaking interim results with spectacular growth in both revenue and earnings.”
With better than expected global demand for electronic products, shipment volume of paper laminates jumped 19%, while that of glass epoxy laminates increased by 45% in 1H 2010 against the previous year. Overall laminates shipment volume posted a 32% increase with average monthly shipment reaching 8.8 million square meters in the period under review. Meanwhile, the average selling price of copper in 1H 2010 rose approximately 76% against the same period last year, which in turn pushed up the average selling price of laminates. Boosted by the People’s Republic of China (“PRC”) government’s policies to encourage domestic consumption, sales denominated in Renminbi (“RMB”) soared by around 70% to HK$2,320 million from HK$1,360 million last year.
Laminate shipment volume softened in May and June this year as customers made inventory adjustments. However, since end of July, the Group has experienced a strong rebound in customers order level. Currently, most of the Group’s laminates plants are operating at full capacities.
Looking ahead, as the PRC government will continue to encourage domestic consumption and the penetration rate of electronic products in China is still lagging behind that of more developed countries, China domestic market demand for electronic products is expected to grow substantially, thereby fuelling the demand for laminate products. In 1H 2010 additional monthly production capacity of 400,000 sheets paper laminates in Fogang, Guangdong province was readily absorbed in the market place. In order to meet the ever increasing demand for laminate products, the Group will continue to scale up laminate production capacities in the second half of 2010 (“2H 2010”). Monthly production capacities of both composite epoxy material (“CEM”) laminates and glass epoxy laminates will increase by 400,000 sheets each under phase one expansion plan of the Jiangyin plant, Jiangsu province. We expect these extra output will be quickly taken up by the enormous demand from customers in eastern China. Total monthly laminate production capacity for the Group is expected to reach 9.2 million sheets by the end of 2010, of which about 42% and 58% is strategically located in eastern and southern China respectively. Furthermore, in line with our laminate capacities expansion in eastern China, the Group plans to set up additional production capacities of glass fabric and glass yarn in eastern China in the next few years. Meanwhile, the Group has made good progress in discussions with local authorities in Shenzhen to explore the feasibility of redeveloping our plant in Longhua, Shenzhen under the “City Renewal Scheme”.
Mr. Cheung concluded: “Order bookings from high density interconnect (“HDI”) printed circuit board customers have achieved encouraging growth in 1H 2010. This clearly demonstrated that our business strategy to develop a diversified product portfolio has paid off. The Group will continue to execute our business strategies to create value and growth while keeping pace with the changing demands in a dynamic market place.”
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 21 manufacturing facilities in the PRC.