Suzhou TFC Optical Communication 300394.SZ 300394 CH Global Markets Research 26 August 2025 EQUITY: NETWORKING Solid 2Q25 results; optical upgrade cycle accelerates 1.6T & 3.2T transceivers, CPO to drive long-term growth Maintain Buy, raise TP to CNY169, implying 16.7% upside TFC reported 1H25 results with revenue/earnings growth of 58%/37% y-y, translating into 2Q25 growth of 83%/50% y-y (+60% / 66% q-q), beating our 2Q25 estimates by 33%/22%. We think the q-q increase in revenue growth was likely due to t ...

Core Insights - POET Technologies Inc. has signed multiple agreements with NationGate Solutions to manufacture optical engine assemblies in Malaysia, indicating a strategic move to enhance manufacturing capabilities and meet customer demand [1][2][3] Group 1: Agreements and Partnerships - The Master Agreement, Module Purchase Agreement, and Deed of Consignment with NationGate will facilitate the assembly and testing of optical engines tailored for a key customer, particularly for hyperscale data centers [1][2] - This partnership is expected to complement existing manufacturing agreements with Globetronics, which has already progressed to shipping a backlog of 800G optical engine samples [4] Group 2: Manufacturing and Operations - Both NationGate and Globetronics facilities are undergoing critical qualification processes to ensure scalability and continuity in delivering high-performance photonics solutions [5] - Establishing a manufacturing footprint in Malaysia is a response to increasing customer demand and a strategic move to diversify and secure the supply chain for POET's Optical Interposer-based products [5] Group 3: Product Offerings and Market Focus - POET specializes in high-speed optical modules and engines for AI systems and hyperscale data centers, utilizing its patented Optical Interposer technology to integrate electronic and photonic devices [6] - The company's products are designed for applications in data centers, AI, high-performance computing, and telecom networks, addressing bandwidth and latency challenges in AI systems [6]