Kingboard Chemicals Holdings, the mainland's largest producer of paper laminate used in electronics components, has shrugged off high commodities prices by passing on costs to customers eager to buy the tightly supplied raw material. Analysts said upstream raw materials suppliers in the electronics industry were benefiting from strong demand stemming from the global economic recovery, which raised material prices amid a lack of new production capacity. In a statement to Hong Kong Exchanges and Clearing, Kingboard said it expected to post on August 16 a net profit growth of between 170 and 200 per cent for the first six months of this year. Based on its $186.64 million interim profit reported last year, the company is expected to see interim earnings of $503.92 million to $559.92 million this year. 'Demand for the group's laminate products exceeded the group's production capacity and all of the group's laminate production plants were fully utilised throughout [the first-half],' the firm said. The average sale price of its laminate products rose about 30 per cent, while sales volume grew more than 30 per cent, it said. Core Pacific-Yamaichi analyst Pauline Lau said Kingboard's product price increases exceeded an estimated 25 per cent to 30 per cent rise in the cost of raw materials such as copper, glass fabric and chemicals. She forecast the company's laminates operating profit margin to rise to 18.5 per cent this year, from 16.4 last year. Kingboard makes paper laminates which are used in components of simple electronic products such as timepieces and calculators. It also makes glass epoxy laminates that are found in more complex products such as computers and mobile phones. Paper and glass epoxy laminates accounted for 57 per cent of total turnover last year. Kingboard has a 50 per cent share of the mainland paper laminate market, according to Core Pacific. The vertically-integrated firm also makes chemicals used to produce laminates, and printed-circuit boards - the electronic component comprising laminates. 'Upstream components makers have not been negatively affected as they can completely pass the rise in raw material costs on to customers,' Ms Lau said.