TIANLI HOLDINGS (00117) saw its stock price surge by over 23% during the trading session, with cumulative gains for the month surpassing 1100%. At the time of writing, the stock was up 20.77%, trading at HK$4.71, with a turnover of HK$96.79 million.

Industrial Securities noted that the supply side of MLCC (Multi-Layer Ceramic Capacitors) has been constrained due to slow industry growth in recent years, with major players exercising caution in capacity expansion. Given limitations in equipment and raw materials, it is difficult to bring substantial new capacity online in the short term. It is anticipated that supply-demand dynamics in the industry will become tighter in the second half of the year, leading to a significant supply gap in the coming years. Currently, global key players are operating at high utilization rates, with some initiating price increases. It is assessed that a new upward cycle has commenced. Recommendations include domestic MLCC leader SANGI GROUP, with suggestions to monitor FENGHUA ADVANCED TECHNOLOGY, upstream paper carrier tape/release film supplier JIEMEI TECHNOLOGY, and TIANLI HOLDINGS.