TFME(SZ:002156) HTSC·2025-10-28 05:08Investment Rating - The report maintains a "Buy" rating for Tongfu Microelectronics [6][4] Core Views - The company is expected to benefit from the ramp-up of mid-to-high-end products, driving revenue growth [1][2] - Strong collaboration with major clients and readiness in high-end capacity are anticipated to lead to increased orders and profit margin growth [1][3] Financial Performance Summary - In Q3 2025, the company achieved revenue of 7.078 billion RMB, representing a year-over-year increase of 17.94% and a quarter-over-quarter increase of 1.90% [1][2] - The net profit attributable to the parent company for Q3 2025 was 448 million RMB, up 95.08% year-over-year and 44.32% quarter-over-quarter [1][2] - For the first three quarters of 2025, total revenue reached 20.116 billion RMB, a year-over-year increase of 17.77%, with a net profit of 860 million RMB, up 55.74% year-over-year [1][6] Outlook Summary - The report highlights the potential for increased demand following AMD's significant orders, which could lead to revenue and profit margin growth for the company [3][4] - The company has completed the construction of new production lines and is prepared to meet future potential orders [3][4] Valuation Summary - The target price has been raised to 52.80 RMB, reflecting an adjustment in profit forecasts for 2025-2027 [4][6] - The report projects net profits of 1.342 billion RMB for 2025, with corresponding EPS of 0.88 RMB [4][9]