T&S(SZ:300570) CMS·2025-10-28 07:10Investment Rating - The report maintains a "Strong Buy" rating for the company [2] Core Views - The company reported a slight decline in Q3 performance, but the MPO and Shuffle segments have significant growth potential. The revenue for the first three quarters of 2025 reached 1.214 billion yuan, a year-on-year increase of 32.58%, while the net profit attributable to the parent company was 260 million yuan, up 78.55% year-on-year. The demand for MPO is expected to follow the high growth of optical modules in 2026, and the company's Shuffle flexible board is continuously iterating, positioning it well for the future [1][5] Financial Performance Summary - For Q3 2025, the company achieved revenue of 386 million yuan, a quarter-on-quarter decrease of 15.7% and a year-on-year decline of 5.0%. The net profit for Q3 was 87 million yuan, down 7.5% quarter-on-quarter but up 31.2% year-on-year. The overall gross margin remained stable above 36%, with a net profit margin increase of 2.1 percentage points to 22.8% [5][6] - The company is expected to benefit from the significant upward revision of overseas optical module demand in 2026, with the MPO business showing good elasticity. The demand for MPO and other high-density optical transmission devices is closely related to the usage of GPUs and optical modules, with increasing value and proportion [5][6] Future Projections - The company is projected to achieve revenues of 1.814 billion yuan, 2.897 billion yuan, and 4.849 billion yuan for the years 2025, 2026, and 2027, respectively. The net profits for the same years are expected to be 386 million yuan, 642 million yuan, and 1.224 billion yuan, with corresponding PE ratios of 65.7, 39.5, and 20.7 [6][19][20] Product Development - The Shuffle product is continuously iterating to effectively adapt to the wave of optical interconnect technology upgrades. The company is focusing on promoting the large-scale application of optical flexible boards in data centers and collaborating with various manufacturers to develop Shuffle solutions [5][6] Market Position - The company is a leading player in the optical dense connection product market, with its self-produced connectors expected to further enhance gross margins. The company has established a 1.5 billion yuan industrial fund in collaboration with a leading optical module company, which is anticipated to provide opportunities for the company's passive products [5][6]