Shares of CCTC (HKEX: 06951) surged more than 7% in afternoon trading. At the time of writing, the stock was up 5.86% to HK$104.8, with a turnover of HK$260 million.

Catalyst for the Move

The rally is driven by news of a structural shortage in Multi-Layer Ceramic Capacitors (MLCCs). High-capacitance MLCC products have reportedly seen a single-day price increase of 5%, with materials being difficult to source.

Company's Technological Progress

In its listing prospectus, CCTC highlighted that it has achieved a breakthrough in high-end MLCC technology, producing dielectric layers with a thickness of approximately 1μm and stacking over 1,000 layers. This advancement lays the groundwork for the company to penetrate high-end application scenarios such as AI data centers and automotive electronics.

A representative from CCTC's securities department stated, "This ultra-high technical specification has already been applied to the company's products, but specific application products and production scale cannot be disclosed."

Analyst Commentary

An industry research report noted that demand from AI computing power and new energy vehicles is driving rapid growth in the high-end MLCC market, with its scale steadily increasing. Leading global manufacturers have already raised prices for AI and automotive-grade products, and the industry as a whole is expected to enter an upward cycle.

The report suggests focusing on domestic leading manufacturers with forward-looking layouts in high-end MLCC products, as they are expected to demonstrate strong profit recovery elasticity when industry conditions improve.