TFC(SZ:300394) HTSC·2025-08-26 07:05Investment Rating - The report maintains a "Buy" rating for the company [7][11]. Core Views - The company's Q2 performance exceeded expectations, driven by the ramp-up of its 1.6T optical engine products and effective cost management [7][10]. - The company is expected to benefit from the ongoing demand in the AI computing sector, particularly in the 800G optical communication industry [10][11]. - The report projects significant revenue growth, with a forecasted revenue of RMB 5.736 billion in 2025, representing a 76.41% increase year-on-year [6][11]. Financial Summary - The target price is set at RMB 164.16, with the closing price as of August 25 at RMB 129.35 [3][11]. - The company's market capitalization is RMB 100.559 billion, with an average daily trading volume of RMB 2.508 million over the past six months [3]. - For the first half of 2025, the company reported revenue of RMB 2.456 billion, a 58% increase year-on-year, and a net profit of RMB 899 million, a 37% increase year-on-year [7][8]. - The company’s gross margin for the first half of 2025 was 50.79%, a decrease of 6.98 percentage points year-on-year, attributed to changes in revenue structure [9]. Growth Projections - Revenue is projected to grow to RMB 8.710 billion by 2027, with a compound annual growth rate (CAGR) of 17.84% from 2025 to 2027 [6][11]. - The net profit attributable to the parent company is expected to reach RMB 3.601 billion by 2027, reflecting a CAGR of 18.42% [6][11]. - The report highlights the company's strong position in the CPO field and anticipates continued growth driven by the demand for 1.6T related products [10][11].