HK Stock Market Move | Chaozhou Three-Circle (Group) (06951) rises over 4% again as Japanese and Korean giants raise prices, catalyzing MLCC. Net profit in the first half of the year is expected to increase by up to 65% year-on-year.

Chaozhou Three-Circle(Group) (06951) has risen over 4%, as of the time of publication, it increased by 4.53%, reporting HK$108.5, with a transaction volume of HK$63.2629 million. In terms of news, leading Japanese and South Korean manufacturers such as Murata, Samsung Electro-Mechanics, and Taiyo Yuden have successively raised prices for high-capacity MLCCs for AI servers and automotive applications, with increases ranging from 15% to 30%. Many companies have stated that the delivery cycles for high-end product orders continue to lengthen, and production capacity can no longer adequately meet the incremental demands from customers. Galaxy Securities believes that the leading MLCC manufacturers are slightly expanding production to stock higher-capacity products, but the release of production capacity will take more than a year. The demand for high-capacity MLCC products is strong, but the supply constraints are difficult to alleviate in the short term. Chaozhou Three-Circle(Group) previously announced a performance forecast, expecting a net profit of RMB 1.794 billion to 2.041 billion in the first half of 2026, representing a year-on-year increase of 45% to 65%. During the reporting period, benefiting from increased demand in the electronic components and optical communication industries, the demand for the company's main business products has grown. Among them, the company's MLCC products have benefited from increased customer recognition and an improved industry climate, with some specifications having their prices restored to their original reasonable values, resulting in substantial year-on-year increases in both sales volume and revenue.