Shares of MAN YUE TECH (00894) have surged more than 12%. As of the time of writing, the stock is up 12.7% to HK$4.17, with a trading turnover of HK$73.7349 million.

This movement is driven by market news. Jianghai Capacitor has issued a price increase notice, with adjustments covering three major product categories: aluminum electrolytic capacitors, film capacitors, and supercapacitors.

It is reported that Nichicon, a leading Japanese aluminum electrolytic capacitor manufacturer, previously announced a comprehensive price increase for all its aluminum electrolytic capacitor products. The price hike has been further widened from the original range of 9%-12% to 10%-15%.

Concurrently, another major Japanese aluminum capacitor manufacturer, Nippon Chemi-Con, has also announced price adjustments.

Public information shows that the core business of MAN YUE TECH and its subsidiaries is the production and sale of high-tech electronic components, including aluminum electrolytic capacitors, conductive polymer aluminum solid capacitors, and other innovative electronic components. The company owns the well-known SAMXON® and X-CON® brands.

Northeast Securities points out that the accelerated generational transition of servers and the significant increase in power consumption per cabinet form the fundamental support for a surge in capacitor demand.