TFC(SZ:300394) CHINA DRAGON SECURITIES·2024-11-09 08:36Investment Rating - The investment rating for the company is "Buy" (maintained) [3][4]. Core Views - The demand for high-speed optical devices continues to grow, leading to sustained high growth in the company's performance. In the first three quarters of 2024, the company achieved operating revenue of 2.395 billion yuan, a year-on-year increase of 98.55%, and a net profit attributable to shareholders of 976 million yuan, a year-on-year increase of 122.39% [3][5]. - The company is enhancing its research and development to solidify its technological advantages and is expanding its global presence to meet the increasing demand driven by AI technology and computing power [3][4]. Financial Performance Summary - For the first three quarters of 2024, the company reported operating revenue of 2.395 billion yuan, up 98.55% year-on-year, and a net profit of 976 million yuan, up 122.39% year-on-year [3][5]. - In Q3 2024 alone, the company achieved operating revenue of 839 million yuan, a year-on-year increase of 54.77%, and a net profit of 322 million yuan, a year-on-year increase of 58.69% [5]. - The gross margin for Q3 2024 was 59.04%, an increase of 3.68 percentage points year-on-year [5]. Earnings Forecast - The company is expected to benefit from the growth in AI technology and the increasing demand for computing power, leading to a stable growth in demand for high-speed optical devices. Revenue growth rates are projected at 137.5%, 31.1%, and 10.3% for 2024, 2025, and 2026, respectively [4][5]. - The forecasted operating revenues for 2024, 2025, and 2026 are 3.91 billion yuan, 5.64 billion yuan, and 7.50 billion yuan, respectively, with net profits of 1.425 billion yuan, 2.068 billion yuan, and 2.797 billion yuan [4][5]. Valuation Metrics - The current price-to-earnings (P/E) ratios for 2024, 2025, and 2026 are projected to be 45.9, 31.6, and 23.4, respectively [4][6]. - The average P/E ratio for comparable companies is 64.1, indicating that the company is valued favorably in comparison to its peers [4][6].