CCTC (06951) saw its share price climb more than 9% during the morning trading session on Tuesday, driven by a wave of positive sentiment in the multilayer ceramic capacitor (MLCC) sector. The stock was trading 9.08% higher at HK$117.7, with transaction volume reaching HK$99.58 million at the time of writing.

The rally follows the announcement from Samsung Electro-Mechanics on September 1, revealing it had secured a landmark long-term supply agreement valued at 1.0722 trillion Korean won (approximately RMB 5.269 billion) with a globally renowned company. The deal, which supplies AI servers with MLCC components, marks the largest supply contract in the company's history, accounting for 9.5% of its consolidated revenue from the previous year. Adding to the bullish momentum, Samsung Electro-Mechanics has also taken the lead in raising price quotes for the fourth quarter of 2026 for its OEM and ODM clients.

Cai Tong Securities issued a research report highlighting that with increasing MLCC sales volumes, price recovery, and the gradual release of new capacity for high-capacity products, CCTC's product mix and profitability are well-positioned for further enhancement. The firm noted that MLCCs will continue to serve as a key driver of earnings growth for the company going forward. Furthermore, as downstream demand for solid oxide fuel cells (SOFC) expands and overseas production capacity gradually comes online, the company stands to benefit from its advantages in ceramic materials and large-scale manufacturing capabilities, opening up additional growth avenues as its second growth curve takes shape.