Shares of TIANLI HOLDINGS (00117) experienced a significant rise of over 12% during the morning trading session. At the time of reporting, the stock was up 7.64%, trading at HK$6.06 with a turnover of HK$22.16 million.

Market Catalysts

The price movement follows a recent announcement from Shenzhen Huaqiang highlighting widespread shortages and price increases for numerous electronic components, including memory, power management chips, analog chips, and MLCCs. Taking MLCCs as an example, the company's long-tail spot business for electronic components has seen a notable increase in inquiries for high-end MLCCs. The company is a major global authorized distributor for Murata. Recently, the company has observed an uptick in customer orders, with clients beginning to pull inventory and proactively replenish stock. For certain models facing shortages, the company is prioritizing procurement requests from its larger clients.

Company Profile and Operations

Public information indicates that TIANLI HOLDINGS is primarily engaged in the ceramic capacitor business. It operates through two main segments: the manufacturing and sales of multilayer ceramic capacitors (MLCCs), and investment and financial services, covering electronic component manufacturing alongside financial investments and services. Yuyang Technology, a wholly-owned subsidiary of TIANLI HOLDINGS, serves as the core operating entity for the group's MLCC business. It focuses on high-end, miniaturized, medium-to-high capacitance products. Currently, its AI MLCCs have been incorporated into NV and Ascend servers.