Shares in Chinese MLCC makers rise as AI lifts sales and profits

China’s top makers of multilayer ceramic capacitors (MLCCs) – ubiquitous components known as the “rice of the electronics industry” – saw their shares rise on Friday after reporting ballooning first-half sales and profits amid soaring demand linked to AI.

Shenzhen-listed shares of Chaozhou Three-Circle Company (CCTC) and Guangdong Fenghua Advanced Technology, two of the country’s largest MLCC makers, gained nearly 1 per cent and 3 per cent, respectively, in morning trading. CCTC’s Hong Kong-listed shares rose more than 4 per cent.

The rally followed strong first-half earnings reported on Thursday. CCTC’s revenue surged 55 per cent to 6.4 billion yuan (US$952.3 million), while its net profit jumped 56 per cent to 1.9 billion yuan.

On the same day, domestic rival Guangdong Fenghua said its net profit for the first half of 2026 rose 74 per cent year on year to 290.3 million yuan. Sales increased 26 per cent to 3.5 billion yuan.

CCTC attributed the increase in sales to improving market sentiment and a recovery in MLCC prices.

For the second half of 2026, CCTC said it would step up its push into high-end MLCCs for the server and automotive sectors, seeking breakthroughs in – and mass production of – ultra-high-capacitance, large-format products.

Guangdong Fenghua also highlighted its shift towards higher-end products. The company said it had made progress in developing and scaling up production of several such products, “centring around high-growth segments like AI computing and automotive electronics”, according to its interim report.