HK Stock Market Move | TIANLI HOLDINGS (00117) rose more than 17% in the morning. MLCC manufacturers announce price hikes intensively, and its subsidiary, Yuyang Technology, is a major MLCC manufacturer in China.

TIANLI HOLDINGS (00117) rose more than 17% in the morning session, rising 16.61% to 6.95 Hong Kong dollars with a trading volume of 99.2484 million Hong Kong dollars at the time of writing. On the news front, recently, passive component giant, Walsin Technology, has issued a price hike notice to distributors, starting from June 1 to raise prices for chip resistors and some MLCC products, mainly due to the continuous increase in raw material prices. As the supply-demand gap for high-capacity MLCC continues to widen for companies like Murata and Samsung Electro-Mechanics, with average utilization rates reaching over 90%, the industry believes that Yageo and Walsin Technology are benefiting as the first in the lineup due to production capacity constraints and overflow orders. Public information shows that Yuyang Technology, as a wholly-owned subsidiary of TIANLI HOLDINGS, is the core operational entity of the group's MLCC business, focusing on high-end small-sized medium-high capacity products. Currently, AI MLCC has entered NV and Ascend servers. China Galaxy Securities stated that AI servers are becoming one of the core scenarios driving the growth in MLCC demand. According to Frost & Sullivan data, the amount of MLCC used in AI servers is approximately 8-12 times that of traditional general-purpose servers.