TFC(SZ:300394) CHINA DRAGON SECURITIES·2024-08-27 10:16Investment Rating - The report maintains a "Buy" rating for the company, Tianfu Communication (300394.SZ) [6]. Core Views - The demand for high-speed optical devices continues to grow, significantly boosting the company's performance. In the first half of 2024, the company achieved a revenue of 1.556 billion yuan, a year-on-year increase of 134.27%, and a net profit attributable to shareholders of 654 million yuan, up 177.20% year-on-year [5][6]. - The company's internationalization strategy is progressing, with operational bases in Suzhou, Singapore, Jiangxi, and Thailand, which is expected to support stable performance growth amid increasing demand driven by AI technology [4][5]. Financial Performance Summary - In the first half of 2024, the company's revenue from passive optical devices was 697 million yuan, a year-on-year increase of 63.69%, with a gross margin of 68.94%, up 13.89 percentage points. Revenue from active optical devices reached 820 million yuan, a year-on-year increase of 267.35%, with a gross margin of 46.84%, up 5.37 percentage points [5]. - The company invested 112 million yuan in R&D in the first half of 2024, accounting for 7.20% of revenue, a year-on-year increase of 76.64%, reinforcing its competitive advantage in product offerings [5][6]. Revenue and Profit Forecast - The company is expected to achieve revenue growth rates of 137.5%, 31.1%, and 10.3% for 2024, 2025, and 2026, respectively. Projected revenues are 3.91 billion yuan for 2024, 5.64 billion yuan for 2025, and 7.50 billion yuan for 2026. Net profits are forecasted to be 1.425 billion yuan, 2.068 billion yuan, and 2.797 billion yuan for the same years [5][7]. - The current price-to-earnings (P/E) ratios are projected to be 32.1, 22.1, and 16.3 for 2024, 2025, and 2026, respectively [6][7].