TFC(SZ:300394)2024-09-20 08:03Investment Rating - The investment rating for the company is "Accumulate" [3]. Core Views - The company benefited from the demand for AI computing power, leading to continuous growth in high-speed optical devices. In the first half of 2024, the company's revenue reached 1.556 billion yuan, a year-on-year increase of 134.27%, with a net profit of 654 million yuan, up 177.20% year-on-year [2][4]. Summary by Sections Financial Performance - In the first half of 2024, the company reported a revenue of 1.556 billion yuan, representing a 134.27% increase year-on-year. The second quarter revenue was 824 million yuan, with a quarter-on-quarter growth of 12.66%. The net profit attributable to shareholders was 654 million yuan, up 177.20% year-on-year, with the second quarter net profit at 375 million yuan, reflecting a quarter-on-quarter increase of 34.58% [2]. - The overall gross margin for the first half of 2024 was 57.77%, an increase of 6.81% year-on-year. The company experienced a decrease in sales expense ratio, management expense ratio, and R&D expense ratio compared to the same period last year [2]. - The net cash flow generated from operations was 480 million yuan, compared to 289 million yuan in the same period last year [2]. Industry Outlook - According to third-party market research from LightCounting, the overall market for optical modules is expected to grow by over 40% in 2024, with the data communication optical modules anticipated to grow the fastest. The industry is projected to continue growing at over 20% in 2025 and maintain double-digit growth rates through 2026-2027 [2]. - The report highlights that the demand for optical devices in the telecommunications sector is growing at a slower pace, while the demand for high-speed optical devices in data centers is steadily increasing due to ongoing global data center expansions [2]. Company Strategy and Operations - The company positions itself as a provider of overall solutions for optical devices and advanced optical packaging services, focusing on the R&D, mass production, and sales of high-speed optical devices. It has accumulated several globally leading core process technologies in various foundational materials [4]. - The company is actively advancing its global industrial layout, with dual headquarters in Suzhou and Singapore, and R&D centers in Japan, Shenzhen, and Suzhou. Production bases are located in Jiangxi and Thailand, with the Thai factory gradually commencing production [4]. - The company aims to improve production efficiency and reduce costs through lean production practices and enhanced financial management, while also pushing for digital transformation to enhance operational capabilities [2][4]. Profit Forecast - The updated profit forecast estimates the company will achieve revenues of 3.680 billion yuan, 5.296 billion yuan, and 6.880 billion yuan for 2024, 2025, and 2026 respectively, with net profits of 1.451 billion yuan, 2.104 billion yuan, and 2.754 billion yuan for the same years. The corresponding P/E ratios are projected to be 28.41, 19.60, and 14.97 [4][5].