Taiwan's passive component stocks are climbing as capacitor prices rise, good news for holders of Holy Stone and its peers.

• Holy Stone jumped to its daily price limit, and money spread into other passive component makers.
• Rising prices for multilayer ceramic capacitors, the tiny parts inside almost every electronic device, are driving the move.
• July profit came in better than expected, and the company expects capacitors to lift sales and margins further this quarter.
• High-end capacitor types are made by only a few suppliers, and current capacity cannot meet demand.
• Foreign investors and local funds were buyers, and analysts rate the stock a buy with a target well above the current price.

Outlook: Tight supply of high-end capacitors should keep prices and passive component stocks firm into next year, with profits forecast to more than double.