On the afternoon of October 6, Sanhuan Group shares continued to climb in the Hong Kong market. As of press time, the stock was trading at HK$137.5 per share, up 6.84%, with a latest market capitalization of HK$273 billion.

On the news front, on October 6, Samsung Electro-Mechanics disclosed in its latest regulatory filing that the company has signed a multilayer ceramic capacitor (MLCC) supply contract for AI servers with a major global enterprise. The contract is valued at approximately 285.611 billion Korean won (about US$210 million), with a term running from January 1 to December 31, 2027.

Since May of this year, Samsung Electro-Mechanics has successively signed long-term supply contracts totaling approximately 3.9 trillion Korean won, covering products such as silicon capacitors, AI server MLCCs, and inductors.

Huafu Securities believes this reflects a trend of prolonged tightness, with AI servers transforming cyclical beta into structural alpha. Soochow Securities noted that brand manufacturers such as Dell, HP, Asus, and Acer, through referrals from ODM manufacturers including Huaqin, LCFC, and Luxshare, have begun validating MLCC products from manufacturers such as Weirong and Sanhuan. Companies like Quanta and Pegatron have also visited Sanhuan and initiated validation efforts. Mainland original manufacturers may still face constraints in yield rates and production capacity for high-end AI products in the short term, but the trend of international OEMs and ODMs expanding the adoption of mainland alternative resources in general servers, consumer electronics, and the low-end automotive-grade market has become increasingly clear.

In addition, MLCC prices have seen a wave of increases this year, with Murata of Japan, Taiyo Yuden, and Samsung Electro-Mechanics of South Korea successively issuing price hike notices. High-capacity MLCCs used in AI servers have generally seen price increases of 15% to 35% from original manufacturers.

In the first half of this year, Sanhuan Group achieved revenue of 6.423 billion yuan, a year-on-year increase of 54.82%, with net profit attributable to shareholders of 1.932 billion yuan, up 56.18% year-on-year. Sanhuan Group stated that in the first half, its MLCC business benefited from improved customer recognition and industry sentiment, with prices for certain specifications recovering to their original reasonable value, and both sales volume and sales revenue achieving significant year-on-year growth.