T&S(SZ:300570) GOLDEN SUN SECURITIES·2025-05-07 08:34Investment Rating - The report maintains a "Buy" rating for the company [3][6]. Core Views - The company reported a total revenue of 370 million yuan in Q1 2025, representing a 66% year-on-year increase, and a net profit of 79 million yuan, which is a 150% year-on-year increase and a 147% quarter-on-quarter increase [1]. - The growth is driven by the increasing demand for high-density connection products, supported by factors such as the upgrade of optical module speeds and the commercialization of CPO technology [1]. - The company has signed a patent licensing agreement with US Conec, allowing it to produce and sell MDC and MMC products, which are essential for high-speed optical modules and CPOs, thus filling a technological gap and enhancing its competitive advantage [2]. - The company is expanding its production capacity to meet the rising demand driven by AI, with a new production base in Vietnam to mitigate tariff risks and improve delivery capabilities [2]. Financial Summary - The company is expected to achieve revenues of 2.315 billion yuan, 3.918 billion yuan, and 5.289 billion yuan for the years 2025, 2026, and 2027 respectively, with corresponding net profits of 509 million yuan, 959 million yuan, and 1.375 billion yuan [3][5]. - The projected P/E ratios for 2025, 2026, and 2027 are 33, 18, and 12 respectively, indicating a favorable valuation trend [3][5]. - The company is anticipated to benefit significantly from the infrastructure development in data centers, which will drive demand for high-density connection products [3].