Shares of Tianli Holdings Group saw a notable turnaround during the morning session, initially falling over 13% before rebounding to gain nearly 8%. At the time of reporting, the stock was up 4.67% to HK$6.05, with a turnover of HK$118 million.

The market movement follows industry analysis indicating that strong AI chip demand is tightening supply for high-end Multi-Layer Ceramic Capacitors (MLCCs), subsequently constricting availability for consumer-grade MLCCs. This has prompted some distributors to engage in precautionary stockpiling, with suppliers responding by adjusting prices.

Recent pricing negotiations between original design manufacturers (ODMs) and suppliers have resulted in an average price decline for MLCCs, hitting a three-year low. This trend suggests the MLCC price cycle may be at a critical inflection point, poised for an upward reversal.

Tianli Holdings (HKEX: 00117)

Public information shows that the group's MLCC operations are centered on its wholly-owned subsidiary, Yuyang Technology. Yuyang is a major domestic player in the MLCC industry, recognized as a national-level specialized and sophisticated "Little Giant" enterprise and a high-tech firm. Its MLCC production capacity ranks among the largest in China and within the top seven globally, with its output of ultra-miniature MLCCs exceeding 95%, holding the top position worldwide in that segment.