The passive component sector is soaring! Yageo leads the charge, and several stocks are following with limit-up gains

Investment Insights - Today during trading, Yageo led the charge to hit the upper limit, driving group stocks and related supply chains to surge simultaneously, with KEMET, Huarong, and Walsin Technology all hitting the upper limit. The passive component sector became the focus of the market today (19th), with multiple stocks showing strong performance and staging a limit-up show. Global passive component leader Yageo (2327) led the charge to hit the upper limit, locking in at NT$173.5, and driving group stocks and related supply chains to surge, with KEMET (2375), Huarong (5328), and Walsin Technology (2492) all hitting the upper limit, while Hesheng Tang (3026) also surged over 7%, with the overall momentum of the sector being strong. This wave of strong performance mainly comes from two major catalysts: first, the news of Yageo's unsolicited acquisition of MuDa continues to ferment, with the market optimistic about the group's integration benefits and the increase in demand for high-end components; second, global MLCC leader Murata Manufacturing's release of AI server demand is expected to boost the optimistic outlook for the passive component market, attracting significant capital inflow into related stocks. KEMET briefly hit the upper limit in early trading, with an increase approaching 10%, pushing the stock price to NT$75.1. As an aluminum capacitor manufacturer under the Yageo group, KEMET benefits not only from the group's integration theme but also from the trend of one-stop solutions, attracting short-term capital. Huarong also performed strongly, locking in the upper limit during trading at NT$15.3. Huarong is a leading manufacturer of plastic film capacitors in Taiwan. Although its recent revenue growth rate has been flat, supported by AI and passive component themes, the stock price showed strong performance, with technical indicators moving upward, and foreign and main funds simultaneously replenishing. Walsin Technology hit the upper limit shortly after opening, reporting NT$95.7, with an increase of 10% and a trading volume of 6,931 shares. As one of the top five MLCC manufacturers globally, Walsin Technology benefits from the recovery in demand for AI, 5G, and electric vehicles, with foreign capital continuously buying in, and main funds concentrating, leading to a significant increase in trading volume, indicating high market interest in low-base electronic stocks. Hesheng Tang surged over 7% during trading today, with the stock price reaching NT$95.7, standing above all moving averages. Analysts are optimistic about the recovery in MLCC demand and high-end component orders driven by AI servers, with foreign capital buying in for three consecutive days, and main funds continuing to concentrate. If it can maintain above the 5-day moving average in the short term, it is expected to continue its upward momentum. From a technical and capital perspective, the passive component sector currently shows strong bullish momentum, with many stocks stabilizing above the quarterly and monthly moving averages, and indicators such as MACD, RSI, and KD moving upward simultaneously, with foreign and main funds clearly flowing back. However, due to the significant short-term increase, investors should be cautious about chasing prices, and it is recommended to pay attention to changes in trading volume and main fund movements, as well as to monitor the strength of pullback support. As AI, electric vehicles, and 5G applications continue to expand, the demand for passive components is expected to gradually recover, coupled with exchange rate advantages and the fermentation of low-base themes, the sector still has room for long-term performance. Investors can continue to monitor the revenue performance and industry dynamics of related stocks as a reference for operations