TFC(SZ:300394)2024-07-22 08:56Financial Data and Key Metrics Changes - The company expects to achieve a net profit attributable to shareholders of 630-677 million yuan in the first half of 2024, representing a year-on-year growth of 167%-187%, with a median of 654 million yuan, indicating a growth of 177% [1][2] - The expected net profit after deducting non-recurring gains and losses is projected to be 617-664 million yuan, with a year-on-year increase of 173.56%-194.48% [1][2] - For Q2 2024, the company anticipates a net profit of 351-398 million yuan, reflecting a year-on-year growth of 144%-177% and a quarter-on-quarter increase of 26%-43% [1] Business Line Data and Key Metrics Changes - The demand for high-speed optical devices is benefiting from the rapid development of AI, with the company positioned as a leading supplier of optical devices, particularly in the 800G product line [1][2] - The company is actively expanding its product offerings in cutting-edge fields such as CPO, with applications extending from optical modules to chip interconnects, indicating a broad market potential [1] Market Data and Key Metrics Changes - North American cloud vendors are maintaining high capital expenditures, with Amazon, Microsoft, Google, and Meta showing significant investments, which is expected to drive demand for optical devices [2] - The company is well-positioned to benefit from the accelerated product upgrade cycles of major tech companies, particularly in the context of AI-driven demand [2] Company Strategy and Development Direction - The company aims to maintain its leadership in the optical communication industry by focusing on high-speed products like 400G and 800G, while also enhancing profitability through the transition of its subsidiary, Polar Photonics [2] - The company is also looking to expand its laser radar business and traditional optical communication segments, which are expected to grow steadily [2] Management's Comments on Operating Environment and Future Outlook - Management highlighted the explosive growth in computing power demand driven by AI and the rapid pace of global data center construction, which is expected to sustain the demand for high-speed optical devices [1][2] - The company anticipates further performance improvements as the demand for 1.6T optical engines gradually releases [1] Other Important Information - The company has a strong competitive position due to its deep ties with major overseas tech companies, which enhances its market resilience [1] - The company has been actively involved in the development of optical interconnect products for many years, positioning itself to be a core beneficiary in this area [1] Q&A Session Summary Question: What is the outlook for capital expenditures among cloud vendors? - The capital expenditures of major cloud vendors like Amazon and Microsoft have shown significant growth, with Microsoft achieving over 50% year-on-year growth for three consecutive quarters, indicating a robust demand environment [2] Question: How does the company plan to address potential risks in the market? - The company acknowledges risks related to potential declines in capital expenditures from domestic and overseas cloud vendors, which could impact the demand for optical modules [4]