T&S(SZ:300570) Guoyuan Securities·2025-10-31 15:33Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to the benchmark index [4][6]. Core Insights - The company reported a revenue of 1.214 billion yuan for the first three quarters of 2025, representing a year-on-year growth of 32.58%, and a net profit of 260 million yuan, up 78.55% year-on-year [1]. - In Q3 2025, the company achieved a revenue of 386 million yuan, a decrease of 4.98% year-on-year and a 15.75% decline quarter-on-quarter, while the net profit was 87 million yuan, showing a year-on-year increase of 31.2% but a quarter-on-quarter decrease of 7.46% [1][2]. Revenue and Profitability - The company has a diverse product matrix and is a leading supplier of optical devices, benefiting from the expansion of demand for optical communication upstream devices and the penetration of new CPO architectures [2][3]. - The gross margin for the first three quarters of 2025 was approximately 38.05%, an increase of 4.27 percentage points year-on-year, while the gross margin for Q3 2025 was 36.15%, remaining stable quarter-on-quarter [2]. Capacity Expansion and Market Position - The company is expanding its production capacity through new facilities in China and a production base in Vietnam, which will support future revenue growth [3]. - The company’s products cover various advanced fields, including traditional high-speed modules and CPO, with a strong competitive edge in quality due to advanced manufacturing processes [3]. Financial Forecast - The company is expected to see revenues of 2.002 billion yuan, 2.691 billion yuan, and 4.064 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding net profits of 437 million yuan, 618 million yuan, and 924 million yuan [4]. - The projected P/E ratios for 2025, 2026, and 2027 are 53, 38, and 25 times, respectively, indicating a favorable valuation trend [4].