Shengang Securities: MLCC has entered a new round of price increases, paying attention to order overflow and domestic substitution.

ShenGang Securities stated that AI-driven demand for high-end MLCCs is prompting leading manufacturers in Japan and South Korea to shift their production capacity towards high-end specifications. With the increasing penetration of intelligent driving, domestic manufacturers are expected to benefit from excess orders and market share replacement. Domestic manufacturers with high capacitance, high voltage, and automotive-grade MLCC mass production capabilities are likely to be the first to benefit. The interim performance forecasts of domestic leading enterprises show a good year-on-year growth. SanHuan Group's MLCC products have seen some specifications' prices recover to their original reasonable values, with sales volume and revenue significantly increasing year-on-year. FengHua Hi-Tech has benefited from the industry's improving conditions, with continued growth in market demand for main products such as MLCCs, leading to year-on-year increases in both sales volume and unit price. It is recommended to pay attention to domestic MLCC leaders and companies in the material sector including FengHua Hi-Tech, SanHuan Group, Torch Electronics, and BoQian New Materials.