CCTC Shares Surge in Hong Kong After-Hours Trading on Strong Profit Forecast and MLCC Price Recovery

Stock News07-21



CCTC (SEHK: 06951) experienced a significant surge in afternoon trading, rising nearly 14%. At the time of writing, the stock was up 11.49% to HK$100.9, with a trading volume of HK$122 million.

The company has issued a forecast, anticipating its net profit for the first half of 2026 to reach a range between RMB 1.794 billion and RMB 2.041 billion. This represents a substantial year-on-year increase of 45% to 65%.

In a separate corporate action, the company announced a plan to repurchase its A-shares. The total amount allocated for this buyback is set at no less than RMB 450 million and no more than RMB 900 million, with a maximum repurchase price of RMB 135 per share.

Key Drivers of Performance

The company attributed its strong performance to increased demand across its core business segments. This growth is driven by a recovery in the electronics components and optical communication industries.

Specifically, the company's Multi-Layer Ceramic Capacitor (MLCC) products have seen significant gains. This improvement stems from greater customer recognition and a more favorable industry climate, which has allowed prices for certain product specifications to recover to reasonable levels. As a result, both sales volume and revenue for MLCCs have shown substantial year-on-year growth.

Furthermore, the accelerated pace of global data center construction has fueled sustained demand in the optical device market. This trend has led to a year-on-year increase in sales for the company's related optical communication products, such as ferrules and sleeves.

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