Kingboard Holdings' stock plummeted 5.17% during intraday trading, marking a significant pullback from recent highs. The decline comes as investors react to multiple factors affecting the company's valuation and market position.

The stock had previously surged nearly 400% year-to-date, driven by strong demand for copper-clad laminates and PCBs from AI data center applications. This rapid appreciation pushed the stock to record highs and elevated valuations, with a trailing P/E ratio of approximately 31.88x, making it vulnerable to profit-taking.

Adding to the downward pressure, the company recently issued 13.47 million new shares through stock option exercises by directors and employees under a preferential share plan, introducing dilution concerns. Furthermore, the broader Electronic Components sector showed widespread weakness during the session, with several of Kingboard's subsidiaries and related companies also experiencing declines.