CCTC (06951) shares surged more than 7%, trading up 6.82% at HK$114.40 as of press time, with a turnover of HK$108 million. Reports indicate that robust AI demand is fueling the passive components market, triggering a scramble for MLCC (Multi-Layer Ceramic Capacitor) supplies amid price increases.

Industry sources suggest that some customers, desperate to secure sufficient inventory, are willing to pay two to three times the normal price to major passive component manufacturers, including Yageo and Murata Manufacturing, creating a bidding war for higher-priced goods. This highlights the escalating supply tightness for MLCCs. Yageo has acknowledged that MLCC demand is exceptionally strong, with market heat continuing to rise across capacity utilization rates, new customer projects, and long-term contract requirements.

Galaxy Securities notes that after Murata and Samsung Electro-Mechanics released their earnings reports, Samsung Electro-Mechanics achieved high growth in performance. Meanwhile, domestic MLCC leaders, including CCTC and Fenghua Advanced Technology, released semi-annual profit forecasts, both reporting high growth. Samsung Electro-Mechanics raised MLCC prices by 30% on August 1, opening up further upside potential for MLCC pricing. The strong performance forecasts from domestic MLCC leaders confirm the ongoing industry logic. This MLCC cycle, driven by AI demand, is expected to have a longer duration, and the MLCC supply chain is likely to benefit sustainably in the future.