Hong Kong Stock Moves: CCTC Surges Over 4% Again on MLCC Catalyst from Japanese and Korean Price Hikes, First-Half Net Profit Expected to Soar Up to 65% Year-on-Year

Stock News
Aug 05

CCTC (06951) extended its gains, rising more than 4% to trade at HK$108.5 as of press time, with a turnover of HK$63.26 million. The move comes amid reports that major Japanese and Korean manufacturers, including Murata, Samsung Electro-Mechanics, and Taiyo Yuden, have raised prices for high-end, high-capacity MLCCs used in AI servers and automotive applications by 15% to 30%. Many companies have noted lengthening order delivery times for premium products, as production capacity struggles to meet rising customer demand. Galaxy Securities commented that leading MLCC players are gradually expanding production to stockpile ultra-high-capacity components, but capacity releases will take over a year, with tight supply for ultra-high-capacity MLCCs unlikely to ease in the short term. CCTC previously issued a profit forecast, expecting net profit of RMB 1.794 billion to RMB 2.041 billion for the first half of 2026, representing a 45% to 65% year-on-year increase. The company attributed the growth to increased demand in the electronic components and optical communications sectors, driving higher sales volumes. Specifically, its MLCC products benefited from improved customer recognition and a stronger industry cycle, with prices for certain specifications recovering to their fair value, leading to significant year-on-year growth in both sales volume and revenue.

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