The share price of TIMES ELECTRIC (03898) has surged close to 10%. As of writing, the stock is up 9.86% to HK$41.02, with a turnover of HK$256 million.

Catalyst for the Move

The rally is driven by news that nearly 20 global analog and power semiconductor companies are set to initiate a new round of price hikes starting July 1st. This year has already seen multiple batches of stepwise price adjustments. Many manufacturers report that current order books are full, with visibility on production capacity significantly improving.

Analysis of Pricing Trends

According to analysis, the industry's pricing adjustments are occurring in distinct phases, primarily due to the staged emergence of cost pressures. The initial price increase at the start of the year was mainly driven by rising costs of bulk metals like gold and copper used in packaging. The second round of adjustments around the end of the first quarter stemmed from increased costs due to a temporary tight supply of specialty gases in wafer manufacturing.

Company Performance and Outlook

A previous research report noted that for 2025, revenue for the company's semiconductor segment grew from RMB 4.365 billion to RMB 5.531 billion, primarily benefiting from the commencement of operations at the Yixing Phase III facility. However, net profit declined from RMB 1.193 billion to RMB 926 million, mainly due to reduced government subsidies, the initial ramp-up costs for new capacity, and intense price competition in low-voltage products.

Looking ahead to 2026, the company's Zhuzhou Phase III silicon carbide project is expected to commence partial production. With the full operation of both the Yixing Phase III and Zhuzhou Phase III projects, the company's power semiconductor production capacity is projected to grow rapidly.