Kingboard Holdings Limited (00148) released unaudited results for the six months ended 30 June 2026, highlighting solid top-line growth and a resilient bottom line despite investment-segment volatility.
1. Headline Figures • Revenue surged 35.0% year on year to HK$29.13 billion. • EBITDA advanced 32.3% to HK$6.31 billion. • Profit before tax rose 42.2% to HK$4.51 billion. • Net profit attributable to shareholders increased 5.0% to HK$2.71 billion, translating into basic EPS of HK$2.45 (2025: HK$2.33). • Interim dividend lifted 6% to HK$0.73 per share, payable on 6 January 2027 to shareholders on record at 16 December 2026.
2. Margin Dynamics • Gross profit expanded 86.7% to HK$7.89 billion, lifting gross margin to 27.1% (1H25: 19.6%). • A HK$1.20 billion fair-value loss on equity investments versus a HK$1.01 billion gain a year earlier weighed on the bottom line and compressed net margin to 9.3% (1H25: 12.0%).
3. Segment Highlights • Laminates: Revenue climbed 55% to HK$15.12 billion; segment profit soared 230% to HK$3.95 billion, driven by robust AI-related demand and higher prices for laminates, electronic fibreglass yarn/fabric and copper foil. • PCBs: Revenue up 23% to HK$7.94 billion; segment profit edged down 10.6% to HK$0.74 billion as raw-material inflation offset volume gains. • Chemicals: Revenue (including inter-segment sales) grew 12% to HK$7.46 billion; segment profit more than doubled to HK$0.44 billion on strong caustic-soda demand. • Property: Revenue rose 25% to HK$0.89 billion; segment profit jumped 148% to HK$0.47 billion, aided by higher rental income and increased residential deliveries. • Investments: Mark-to-market losses of HK$0.55 billion contrasted with a HK$1.29 billion profit in 1H25, reflecting late-June market weakness.
4. Balance Sheet & Liquidity • Cash and equivalents: HK$11.33 billion (31 Dec 2025: HK$3.47 billion). • Net gearing improved to 22% from 32%. • Current ratio strengthened to 2.27 (31 Dec 2025: 1.85); net current assets rose to HK$37.60 billion. • A HK$6.00 billion five-year sustainability-linked syndicated loan was signed in July 2026, with commitments from 37 banks.
5. Capital Expenditure & Expansion • HK$3.20 billion invested in new production facilities and HK$0.20 billion in property construction during the period. • Key projects under way include eight specialty electronic fibreglass yarn kilns in Qingyuan, additional electronic fibreglass fabric lines in Guangdong, high-frequency copper-foil capacity in Qingyuan, and new laminate/PCB plants in Jiangxi, Vietnam and Thailand.
6. ESG & Cost Efficiency • Installed photovoltaic systems generated 125 million kWh in 1H26, saving 32,000 tonnes of standard coal and reducing CO₂ emissions by 70,000 tonnes. • Thermal-energy recovery projects cut a further 40,000 tonnes of CO₂, with cumulative energy-cost savings reaching HK$0.82 billion by period end.
7. Management Outlook Management expects the AI-driven upcycle to sustain tight supply in laminates and upstream materials, with July profit from the laminates unit already around HK$1.10 billion. Ongoing capacity additions across electronic fibreglass yarn, fabric, copper foil and high-end PCBs are slated through 2028 to capture continued demand from AI, high-speed computing and smart-vehicle markets.
The board affirms its prudent financial stance, highlighting stable cash flow, diversified operations and no material FX exposure. Kingboard Holdings and its laminate subsidiary were added to the MSCI China Index in 2026, underscoring the group’s market standing.