Kingboard Holdings (0148.HK): Stock Under Pressure Was Largely Led by Mgmt Share Disposal

Research evidence excerpt

Kingboard Holdings (0148.HK): Stock Under Pressure Was Largely Led by Mgmt Share Disposal

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07 Jul 2026 11:03:50 ET │ 13 pages

Kingboard Holdings (0148.HK)

Stock Under Pressure Was Largely Led by Mgmt Share Disposal

CITI’S TAKE

Per HKEx as of 07-Jul, Hallgain further reduced its stake in KBH from

Buy 34.3% recently to 31.98% (transaction details in Fig 1). In other words,

Catalyst Watch: Upside, expires 22-JUL-26 Hallgain has disposed by 12.5% its stake from the latest high of 44.5% in

Price (07 Jul 26 16:10) HK$84.60 Apr to 31.98% on 06-Jul, a net reduction of 11.78% YTD. Historically,

Hallgain ownership on KBL has ranged between ~30.1% (Apr-2025) – Target price HK$202.00

44.5% (Apr-2026) during 2004-26 YTD (Fig 2). We still believe Hallgain Expected share price return 138.8%

ownership won’t fall below 30% (as the threshold level for triggering a Expected dividend yield 2.8%

takeover scenario). For the worst-case scenario, if Hallgain sells further by Expected total return 141.6%

~2% to the 30% threshold level, this would mean ~22m shares for further Market Cap HK$94,903M

share disposal, compared with average trading vol of 54m shares over the

US$12,100M past 2 weeks. As such, this may cap stock upside in the near term, though

the valuation still looks cheap (8x PE & 1.2x PB for 2027E). Prefer KBL

over KBH.

Eric LauAC

Share disposal – Fig 1 exhibits Hallgain (the largest shareholder of KBH) sales of share +852-2501-2726

transaction mainly during 22-Jun to 07-Jul. Total cash consideration amounts to eric.h.lau@citi.com

HK$15.6bn (or US$2.0bn) YTD. The weighted average price is HK$123.6, implying the

Alice Caicurrent price at a ~32% discount.

+852-2501-2704

alice.cai@citi.com

Unlikely for KBH share placement of KBL for near term – Per the KBL placement Andy Li