TFC(SZ:300394) Minsheng Securities·2024-08-23 04:30Investment Rating - The report maintains a "Recommended" rating for the company, with a current price of 85.61 CNY [2]. Core Insights - The company achieved significant growth in revenue and net profit in the first half of 2024, with revenue reaching 1.556 billion CNY, a year-on-year increase of 134.3%, and net profit attributable to shareholders reaching 654 million CNY, a year-on-year increase of 177.2% [1]. - The growth is primarily driven by the increasing demand for high-speed optical devices due to advancements in AI technology, while the telecom market's demand for optical devices remains relatively stable [1]. - The company's gross margin improved significantly, reaching 57.8%, an increase of 6.81 percentage points year-on-year, attributed to the strong demand for high-margin optical devices [1]. - Continued focus on R&D is evident, with R&D expenses amounting to 112 million CNY in the first half of 2024, a year-on-year increase of 76.6%, indicating the company's commitment to capturing future AI development opportunities [1]. Financial Performance Summary - For the second quarter of 2024, the company reported revenue of 824 million CNY, a year-on-year increase of 118.5% and a quarter-on-quarter increase of 12.7% [1]. - The revenue breakdown shows that passive optical devices generated 697 million CNY (44.8% of total revenue) with a year-on-year growth of 63.4%, while active optical devices generated 820 million CNY (52.7% of total revenue) with a year-on-year growth of 267.35% [1]. - The forecast for net profit attributable to shareholders for 2024-2026 is projected to be 1.383 billion CNY, 1.978 billion CNY, and 2.612 billion CNY, respectively, with corresponding PE multiples of 34x, 24x, and 18x [1].