TFC(SZ:300394) Huachuang Securities·2024-04-24 03:31Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [2][15]. Core Views - The company reported a significant increase in revenue and net profit for Q1 2024, with revenue reaching 732 million yuan, a year-on-year growth of 154.95%, and net profit of 279 million yuan, up 202.68% year-on-year [2]. - Despite a slight decline in performance compared to the previous quarter, the company is expected to benefit from strong downstream demand and the upcoming operational capacity from its Thailand production base [2][3]. - The company is positioned as a leading provider of optical device solutions, poised to benefit from the growing demand for high-speed optical modules driven by global AI computing needs [2][3]. Financial Summary - For 2024, the company is projected to achieve total revenue of 4.01 billion yuan, with a year-on-year growth rate of 106.9%, and a net profit of 1.47 billion yuan, reflecting a growth rate of 101.4% [3]. - The company maintains a high gross margin of 55.51% in Q1 2024, with a net profit margin of 38.24%, indicating strong profitability [2]. - The company's inventory turnover days improved significantly to 67.74 days in Q1 2024, down from 89.83 days at the end of 2023, suggesting efficient inventory management [2].