TFC(SZ:300394) Minsheng Securities·2024-04-23 01:00Investment Rating - The report maintains a "Recommended" rating for the company [3]. Core Views - The company's revenue for 2023 reached 1.939 billion yuan, a year-on-year increase of 62.04%, and the net profit attributable to the parent company was 730 million yuan, up 81.14% year-on-year. The fourth quarter of 2023 saw a revenue of 732 million yuan, a year-on-year increase of 138.78% and a quarter-on-quarter increase of 35.16% [2]. - The significant growth in revenue and net profit is primarily driven by the demand for high-speed optical devices fueled by AI applications. The revenue breakdown shows that passive optical devices generated 1.183 billion yuan (61.04% of total revenue), active optical devices generated 746 million yuan (38.48% of total revenue), while other revenues decreased to 9.35 million yuan [2]. - The gross margin for optical communication components improved to 54.26%, an increase of 2.62 percentage points year-on-year, with passive optical devices achieving a gross margin of 60.25% and active optical devices at 44.77% [2]. - The company is focusing on R&D and has a comprehensive layout in the high-speed product field, indicating broad future development potential. Key R&D projects include products suitable for various special application scenarios and high-power transmission modules [2]. Financial Summary - The company forecasts revenues of 3.727 billion yuan, 5.300 billion yuan, and 6.901 billion yuan for 2024, 2025, and 2026, respectively, with growth rates of 92.2%, 42.2%, and 30.2% [4]. - The net profit attributable to the parent company is projected to be 1.383 billion yuan, 1.978 billion yuan, and 2.612 billion yuan for the same years, with growth rates of 89.5%, 43.0%, and 32.1% [4]. - The earnings per share are expected to be 3.50 yuan, 5.01 yuan, and 6.62 yuan for 2024, 2025, and 2026, respectively [4]. - The price-to-earnings (PE) ratio is projected to decrease from 84 in 2023 to 44 in 2024, 31 in 2025, and 23 in 2026 [4].