Electronic Component Sector: Asia marketing trip feedback: Growing MLCC price hike expectations

We visited investors in Hong Kong and Singapore from September 14 to 18. Following share price declines in July–August, valuations on many stocks have started to settle down within their historical ranges even based on FY2027 estimates, and our overall impression is that many investors have begun to look for the next catalysts, though conditions remain heavily influenced by macro. Against this backdrop, we sensed growing long-side interest in MLCC stocks (Murata Manufacturing, TDK) due to the possibility of future price increases. One striking development was that both long-only investors and hedge funds have become more positive about TDK. Interest in MLCCs is growing again on the long side, with positions gradually increasing mainly at hedge funds. Expectations for price hikes by Japanese manufacturers are building as overseas MLCC manufacturers' price hike negotiations progress;