Everbright Securities: Jiandao Multilayer Board's 2025 full-year performance shows significant year-over-year growth, with the profit elasticity logic continuing to strengthen

Everbright Securities releases a research report stating that in 2025, the full-year sales of Jintao’s laminated panels (01888) will reach HKD 20.4 billion, a year-on-year increase of 10.0%; gross profit will be HKD 3.991 billion, up 21.7% YoY, with a gross profit margin of 19.6%, an increase of 1.9 percentage points YoY; net profit will be HKD 2.442 billion, up 83.6% YoY, with a net profit margin of 12.0%, an increase of 4.8 percentage points YoY.

Given the company’s profit elasticity improvement during the cost increase cycle, copper-clad laminate products are expected to continue raising prices to boost profits, and high-end electronic fabrics may open growth space. Everbright Securities has raised the forecast for attributable net profit in 2026-27 by 28%/26% to HKD 5.07 billion / HKD 6.08 billion, and added a forecast for 2028 attributable net profit of HKD 6.71 billion. Based on the closing prices on March 16, these correspond to PE ratios of 14x/11x/10x.

Maintaining a “Buy” rating.

Everbright Securities pointed out that in 2025, the company’s revenue from copper-clad panels/property/investment will be HKD 20.225 billion / HKD 78 million / HKD 97 million, respectively, a YoY increase of 10.5% / 38.7% / 11.4%. Benefiting from strong demand for copper-clad panels and upstream raw materials (electronic glass fiber yarn, glass fiber cloth, and copper foil), the company’s products in 2025 achieved both volume and price increases compared to 2024, with profits from electronic glass fiber yarn and glass fiber cloth exceeding HKD 600 million, up 70% YoY. Additionally, the company’s 2025 performance announcement states, “Currently, many copper-clad panel companies are affected by electronic fabric shortages, causing electronic fabric prices to continue rising.” Everbright Securities expects profits from electronic glass fiber yarn and cloth to significantly increase in 2026.

Recently, leading domestic and international companies in the copper-clad panel (CCL) industry have announced price hikes: Resonac and Mitsubishi Gas Chemical both announced increases in the prices of CCL and other products. On March 10, Jintao Group issued a price increase notice, effective immediately, raising prices for all thicknesses and specifications of boards, PP (semi-cured sheets), and copper foil processing fees by 10%. Everbright Securities pointed out that since 2025, copper-clad laminate manufacturers like Jintao have implemented multiple rounds of price increases, mainly due to soaring prices and tight supply of chemical products like epoxy resin and TBBA, continued rises in electronic fabric prices, and high copper prices, leading to increased raw material and processing costs for copper-clad laminates.

Additionally, Jintao’s laminated panel supply chain is highly stable, and its cost control capabilities are strong. The “profit elasticity release” logic is gradually being realized. The company has built a complete vertical integrated industry chain, producing core raw materials such as glass fiber yarn, glass fiber cloth, and copper foil in-house, combined with the bargaining power from diversified downstream customers, which enhances supply chain stability and cost control.

According to the company’s 2025 performance announcement, the group will add three new second-generation low dielectric constant and low coefficient of thermal expansion electronic glass fiber yarn production lines with an annual capacity of 500 tons in the first half of 2026. In the second half of 2026, the annual capacity of 70,000 tons of electronic glass fiber yarn and 9.6 million meters of electronic glass fiber cloth in Shaoguan, Guangdong, is expected to come into operation. Everbright Securities believes that the company’s supply chain advantages support continuous and smooth price increases, which are expected to further boost profit margins.