TFC(300394) -·2024-07-30 23:57Financial Data and Key Metrics Changes - The company experienced a compound annual growth rate (CAGR) of 34% in revenue and 26% in net profit from 2018 to 2023, significantly outperforming the industry average [1][1]. Business Line Data and Key Metrics Changes - The company has shown steady growth in its optical device manufacturing, particularly in the research and production of optical fiber connectors and related components [1]. Market Data and Key Metrics Changes - The stock price of the company has been volatile due to external factors such as tariff changes and fluctuations in the US stock market, rather than solely based on fundamentals [1]. Company Strategy and Development Direction and Industry Competition - The company opts for integrated optical device platform suppliers to streamline procurement and production processes, reducing supply chain risks [1]. - The company holds a competitive advantage in the optical engine market due to its upstream position, rich component supply capabilities, and some active device packaging technologies [1]. Management's Comments on Operating Environment and Future Outlook - Management indicated that despite short-term concerns regarding the company's fundamentals, there are multiple catalysts and strong financial data supporting a recovery in growth [1]. - The company noted that the optical engine's application is expanding, particularly in high-speed data transmission scenarios, which is expected to drive future growth [1]. Other Important Information - The actual controllers of the company hold approximately 38% of the shares, with the company having several subsidiaries focusing on different business areas [1]. Q&A Session Summary Question: What are the main factors affecting stock price fluctuations in the current market environment? - Answer: Recent stock price fluctuations are influenced more by international conditions and US stock market dynamics than by fundamentals [1]. Question: How has the stock price of Tianfu Communication performed in recent years? - Answer: The stock price experienced volatility due to 5G inventory digestion but saw significant increases due to rising demand in new construction and cloud computing [1]. Question: What is the development status of cloud computing and its impact on the company's stock price? - Answer: After rapid growth, cloud computing entered a stable phase in 2021 and 2022, with the company experiencing a significant surge in stock price due to the rise of AI technology [1]. Question: What is the company's shareholding structure and main business? - Answer: The actual controllers hold about 38% of the shares, and the company has shown steady growth in its performance, particularly in optical device manufacturing [1]. Question: Why does the company prefer integrated optical device platform suppliers? - Answer: Integrated suppliers provide most required optical devices, simplifying management and coordination, and reducing supply chain risks [1]. Question: What is an optical engine and its main application scenarios? - Answer: An optical engine is responsible for optoelectronic conversion and integrates various optical components, with applications in traditional optical modules and various logic chip interconnections [1]. Question: What is the company's competitive advantage in the optical engine market? - Answer: The company has a competitive edge due to its upstream position, component supply capabilities, and the ability to meet customer confidentiality needs, leading to higher profit margins [1].