Kingboard Group: Profit Alert IH26 Results on KBH and KBL

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Kingboard Group: Profit Alert IH26 Results on KBH and KBL

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30 Jul 2026 16:32:13 ET │ 14 pages

Kingboard Group

Profit Alert 1H26 Results on KBH and KBL

CITI'S TAKE

Per HKEx, KBH (0148.HK) and KBL (1888.HK) both issued profit alerts.

KBH reported 1H26 net profit grew 4% to more than HK$2.7bn, below our

projection of HK$4.016bn. But if stripping out investment items, adj. net

profit would have surged 1.5x YoY to HK$3.2bn. On the other hand, KBL Eric LauAC

reported 1H26 net profit soared 200%+ to HK$2.8bn, lower than our +852-2501-2726

forecast of HK$4.023bn. The company attributed the robust earnings eric.h.lau@citi.com

growth to the strong demand for and shortage of e-glass fabric, copper

Alice Cai foil, and CCL amid the AI era. Despite the earnings miss versus our

forecasts, these have been well discounted given both stocks have +852-2501-2704

alice.cai@citi.com significantly corrected amid the market shake-out of AI stocks and are

trading well below historical mean in PE terms. Reiterate Buy on KBL and Andy Li

KBH, but we prefer KBL to KBH on stronger earnings growth momentum. +852-2501-2597

andy.li@citi.com

KBH 1H26 profit even higher than our forecast assuming flat investment gain – KBH

said the investment loss of HK$0.5bn in 1H26E contrasted with the investment gain

of HK$1.3bn a year ago. However, the investment (as of the date of corporate

announcement, 30 July) has swung back to positive territory, with the gain exceeding

the HK$1.3bn in 1H25. Assuming no change to the investment gain of HK$1.3bn, the

adj. net profit during 1H26E would surpass HK$4.5bn, which is ~12% higher than our

projection of HK$4.016bn. We believe most of the investment is related to high-

dividend-yield blue chips in the Hong Kong stock market with the recent fund rotation