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14-02-2021, 04:55 PM
(This post was last modified: 14-02-2021, 04:55 PM by Rocinante2.)
We are in an upcycle for KB Laminates.
KB Laminates is the lowest cost producer for CCL used in the making of PCB.
It is a cyclical stock because KBL always maintain 100% utilization and do whatever it take to sell i.e. cut price because with it's scale it is still profitable when it drive other into losses.
Now we are in an upcycle, when does it end? I dunno... but mgmt had started selling which could be 6-12 months from now peak out.
Ride it while you can, get out when before it peak out.
Note that this year KBL will see auto contribution to sales jump from single digit to 30%. Also a EV, auto electrification play!
KB Laminates is the lowest cost producer for CCL used in the making of PCB.
It is a cyclical stock because KBL always maintain 100% utilization and do whatever it take to sell i.e. cut price because with it's scale it is still profitable when it drive other into losses.
Now we are in an upcycle, when does it end? I dunno... but mgmt had started selling which could be 6-12 months from now peak out.
Ride it while you can, get out when before it peak out.
Note that this year KBL will see auto contribution to sales jump from single digit to 30%. Also a EV, auto electrification play!
Am vested in the kingboard stable as well. KBCF privatized 2 years ago by KBL so lots of cash has flown to KBL and hence the special HKD2 recently.