TFC(SZ:300394) Huachuang Securities·2024-08-23 08:45Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [2][14]. Core Views - The company's performance in the first half of 2024 met expectations, with a significant increase in revenue and net profit, driven by a strong demand for active components [2]. - Active components have surpassed 50% of total revenue for the first time, indicating a shift in the company's product mix [2]. - The company is expected to achieve stable growth in traditional products while new products are anticipated to contribute significantly to revenue in the future [2]. Financial Performance Summary - In H1 2024, the company achieved revenue of 1.556 billion yuan, a year-on-year increase of 134.27%, and a net profit of 654 million yuan, up 177.20% [2]. - In Q2 2024, revenue reached 824 million yuan, growing 118.54% year-on-year and 12.66% quarter-on-quarter, with net profit of 375 million yuan, reflecting a year-on-year increase of 160.88% and a quarter-on-quarter increase of 34.41% [2]. - The gross margin for H1 2024 was 57.77%, up 6.81 percentage points year-on-year, while the net margin was 42.13%, an increase of 6.58 percentage points year-on-year [2]. Business Segment Analysis - Revenue from passive components was 700 million yuan, a year-on-year increase of 63.4%, accounting for 45% of total revenue, while active components generated 820 million yuan, a year-on-year increase of 267.4%, making up 53% of total revenue [2]. - The company has effectively controlled its expense ratios, with a sales expense ratio of 0.91%, down 0.80 percentage points year-on-year, and a management expense ratio of 4.15%, down 1.22 percentage points year-on-year [2]. Future Outlook - The company is expected to maintain stable growth across its product lines, supported by ongoing capacity expansion in its Jiangxi factory and the commencement of operations at its Thailand facility [2]. - The company has committed to high levels of R&D investment, which is anticipated to drive the development of new products, particularly in response to the growing demand for AI-related optical devices [2]. - Revenue projections for 2024, 2025, and 2026 are estimated at 4.011 billion yuan, 5.951 billion yuan, and 7.962 billion yuan, respectively, with net profits expected to be 1.470 billion yuan, 2.274 billion yuan, and 3.042 billion yuan [3].