T&S(300570) GOLDEN SUN SECURITIES·2025-05-07 10:23Investment 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 gradual 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 components 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 established in Vietnam to mitigate tariff risks and improve delivery capabilities [2] Financial Projections - Revenue projections for 2025-2027 are 2.315 billion yuan, 3.918 billion yuan, and 5.289 billion yuan respectively, with net profits of 509 million yuan, 959 million yuan, and 1.375 billion yuan [3] - The corresponding P/E ratios are expected to be 33, 18, and 12 times for the years 2025, 2026, and 2027 respectively [3] - The company is anticipated to benefit significantly from the infrastructure development of data centers, leading to increased demand for high-density connection products [3]