TIANLI HOLDINGS (00117) surged over 23% again, bringing its cumulative gain for the month to more than 1100%. At the time of writing, the stock was up 19.74% to HKD 4.67, with a turnover of HKD 95.2144 million.

On the news front, the MLCC industry is showing the clearest price reversal signals in nearly three years. International manufacturers Murata and Taiyo Yuden raised prices in April and May, respectively, with domestic manufacturers following suit recently. An industry source from the domestic MLCC supply chain revealed that prices for mid-to-low-end consumer-grade products have recently increased by approximately 20%, and distributors are indeed engaging in stockpiling.

Industrial Securities pointed out that due to slow industry growth in recent years, major players have been cautious about capacity expansion. Constraints on equipment and raw materials make it difficult to rapidly bring significant new capacity online in the short term. It is expected that the supply-demand relationship in the industry will tighten further in the second half of the year, leading to a noticeable supply gap in the coming years. Currently, global core players are operating at high utilization rates, with some initiating price hikes. This indicates a new upward cycle has begun. The firm recommends domestic MLCC leader SANGAN GROUP and suggests monitoring FENGHUA ADVANCED TECHNOLOGY, upstream paper carrier tape/release film supplier JIEMEI TECHNOLOGY, and TIANLI HOLDINGS.