CCTC (06951) rose more than 4% in early trading on Thursday, last up 2.73% at HK$127.40 with turnover reaching HK$132 million.

The rally comes after MLCC industry leader Murata issued an official notice regarding its 2026 fiscal year product line optimization plan, announcing it will discontinue production of select MLCC products while expanding capacity for other lines. Customers have been instructed to submit written responses by the end of 2027, with final orders to be placed by the end of March 2028.

Where the market is heading

According to Guohai Securities, constrained by long lead times for overseas high-end equipment, the supply-demand gap for high-capacity MLCCs could widen next year, with the tight market conditions potentially extending through 2028.

Guangfa Securities previously noted that in the current cycle, industry growth remains primarily driven by increased shipment volumes and capacity efficiency improvements. Japanese and Korean high-end leaders such as Murata and Samsung Electro-Mechanics are first to benefit from demand for high-capacity, high-reliability products tied to AI servers. Improved product mix has also contributed to rising premium returns.

For the broader industry, demand leads the way with volumes expanding and prices beginning to firm. There remains substantial room for price and margin expansion, suggesting the current MLCC industry cycle is still in its early upward phase.