TFC(300394)2024-11-06 03:23Investment Rating - The report maintains an investment rating of "Buy-A" for the company [6] Core Views - The company has shown strong performance in the first three quarters of 2024, achieving revenue of 2.39 billion yuan, a year-on-year increase of 98.6%, and a net profit attributable to shareholders of 980 million yuan, up 122.4% year-on-year [2][3] - The decline in Q3 performance is attributed to the delivery schedule of optical engines and financial expenses, despite a significant increase in global high-speed optical module shipments [3] - The company is positioned as one of the largest suppliers of optical engines globally, with a focus on silicon photonics and a strong product mix that is expected to benefit from the upcoming demand for 1.6T optical modules [4][5] Financial Performance Summary - For the first three quarters of 2024, the company reported a revenue of 2.39 billion yuan and a net profit of 980 million yuan, with a quarterly revenue of 840 million yuan in Q3 [2] - The gross margin for Q3 was 59.0%, slightly down by 0.73 percentage points due to various factors including exchange rates and product mix [3] - The company’s projected net profits for 2024-2026 are adjusted to 1.37 billion yuan, 2.57 billion yuan, and 3.30 billion yuan respectively [6] Market Position and Future Outlook - The company is actively developing products for the CPO (Chiplet-based Optical) market, which is expected to open up greater growth opportunities as SERDES rates upgrade [5] - The demand for passive components remains strong despite market shifts towards silicon photonics, with specific components like lenses and isolators expected to see growth [4] - The anticipated release of NVIDIA's Blackwell in Q4 is expected to drive demand for 1.6T optical modules, benefiting the company's product offerings [4]