Shares of TIANLI HOLDINGS (00117) surged by more than 23% at one point during the trading session. As of the latest update, the stock is up 16.23%, trading at HK$4.44 with a turnover of HK$29.6071 million.

The significant movement follows reports that Samsung Electro-Mechanics is in the final stages of negotiations with a U.S.-based cloud service provider regarding a supply contract for Multi-Layer Ceramic Capacitors (MLCCs) used in artificial intelligence servers. The contract is estimated to be worth approximately 500 billion Korean won.

It is noteworthy that the spot market for MLCCs has remained strong since the beginning of 2026, with further intensification observed from May. Prices for certain high-demand components have already increased several-fold.

TIANLI HOLDINGS is an investment holding company primarily engaged in the ceramic capacitor business. According to its 2025 annual report, the company generated MLCC revenue of 639 million yuan last year, with its gross profit margin rising to 21.2%.

Analysis from CITIC Securities points out that the recent acceleration in MLCC price increases is being closely monitored. The firm suggests the current MLCC cycle could mirror the super boom cycle of 2017-2018, with price hikes potentially lasting over a year. Price increases at the manufacturer level are expected to be significant, potentially doubling or even higher.