Passive component giants raise prices, only 5 A-share related high-performing potential stocks

Following the storage chips, passive components have recently joined the price increase trend. According to recent reports, due to the surge in demand for tantalum capacitors driven by AI applications, KEMET, a subsidiary of the major passive component manufacturer Yageo Corporation, has issued a price increase notice for tantalum capacitors to its customers. This is KEMET's second round of price hikes this year, and compared to the first round, the range of customers affected has expanded from distributors to direct sales customers. Supply chain sources indicate that the price increase could be as high as 20% to 30%. As a result of the price hikes, the domestic passive component concept index has risen nearly 5% in the first three trading days of this week. Currently, there are more than 20 stocks in the A-share market involved in the passive component industry chain. In terms of performance, these stocks are expected to achieve a combined net profit of nearly 6.6 billion yuan in 2024, a year-on-year increase of 17.8%, reversing the continuous decline in net profit in 2022 and 2023. In the first three quarters of this year, these stocks achieved a net profit of nearly 5.8 billion yuan, a year-on-year increase of nearly 12%. From the perspective of individual stocks, in the first three quarters of this year, the net profit growth exceeding 20% includes Sunlord Electronics, Dalicap, Tongfeng Electronics, Junwei Electronics, and Shunluo Electronics. Furthermore, among these more than 20 stocks, only 5 stocks have underperformed the passive component index's growth this year while achieving a net profit growth of over 10% in the first three quarters, namely Tongfeng Electronics, AiHua Group, Dalicap, Farah Electronics, and Junwei Electronics, with the latter two stocks having a growth rate of less than 5% this year