Investment Rating - The investment rating for the company is "Outperform the Market" [5][24]. Core Views - The company is expected to achieve a revenue of 3.252 billion yuan in 2024, representing a year-on-year growth of 67.74%, and a net profit of 1.344 billion yuan, with a year-on-year increase of 84.07% [9][24]. - The growth in the company's active optical devices is significantly driven by the development of AI, with both active and passive optical products experiencing rapid growth [16][21]. - The company has a strong focus on R&D and innovation, particularly in the field of optical devices, benefiting from a new round of optical communication technology iterations [3][21]. Revenue and Profit Forecast - The company forecasts revenues of 4.806 billion yuan in 2025, with a growth rate of 47.8%, and a net profit of 1.951 billion yuan, reflecting a growth of 45.2% [4][29]. - The revenue from passive optical devices is expected to grow at a rate of 33.1% in 2024, while active optical devices are projected to grow by 135.6% [27][29]. Financial Metrics - The overall gross margin for the company is projected to increase by 3.02 percentage points to 57.29% in 2024, with passive optical devices contributing a gross margin of 68.41% and active devices at 46.69% [2][21]. - The company's net asset return (ROE) is expected to reach 33.8% in 2024 and 39.4% in 2025 [4][29]. Market Position and Strategy - The company is actively expanding its global business layout, with a new factory in Thailand expected to be completed by the end of April 2024, which will support ongoing capacity expansion [3][21]. - The company has accumulated several globally leading core process technologies in basic materials through self-research and acquisitions, positioning itself well in the market [3][21].

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - In Q1 2025, the company's revenue increased by 10% quarter-on-quarter, showing an acceleration compared to the previous two quarters. The growth in 2025 is primarily driven by the release of production capacity in Thailand and the ramp-up of the 1.6T optical engine [2][5]. - The gross margin slightly declined, while net profit margin was affected by exchange rate fluctuations. The company's overseas bases enhance delivery capabilities, helping to mitigate tariff impacts [2][5]. - The CPO/OIO market presents significant long-term opportunities, with the company establishing strong ties with major overseas clients, leading to a premium in valuation [2][5]. Summary by Sections Financial Performance - In Q1 2025, the company achieved revenue of 945 million yuan, a year-on-year increase of 29% and a quarter-on-quarter increase of 10%. The net profit attributable to the parent company was 338 million yuan, a year-on-year increase of 21%, but a quarter-on-quarter decline of 8% [5]. - The gross margin for Q1 2025 was 53%, down 2.5 percentage points year-on-year and 1.4 percentage points quarter-on-quarter. The net profit margin was 35.8%, down 2.5 percentage points year-on-year and 6.9 percentage points quarter-on-quarter, primarily due to exchange rate fluctuations [2][5]. Market and Production Insights - The company is actively expanding production capacity in the optical passive device sector, with the first phase of the Thailand production line expected to start delivering soon. The second phase is also in preparation for expansion [2][5]. - The shift in focus from 800G products to 1.6T products by major clients is anticipated to accelerate delivery volumes in upcoming quarters, with the company well-prepared for this capacity increase [2][5]. Future Outlook - The company forecasts net profits of 2.081 billion yuan, 2.741 billion yuan, and 3.386 billion yuan for 2025, 2026, and 2027, respectively, with corresponding year-on-year growth rates of 55%, 32%, and 24%. The projected price-to-earnings ratios are 19x, 14x, and 11x [2][5].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to benefit from the expansion of demand and technological development for both passive and active products. The demand trends for 2025 include the significant release of 800G demand driven by cloud providers, the continued advantage of Nvidia in hardware and software systems, and the penetration of silicon photonic modules [3] - The company is well-positioned as a quality supplier of core components in the optical module upstream, deeply bound with major downstream manufacturers, and is expected to benefit from the volume growth of 800G and 1.6T products, as well as the long-term penetration trend of CPO [3] Financial Performance Summary - In 2024, the company achieved a total revenue of 3.25 billion yuan, a year-on-year increase of 67.7%, and a net profit attributable to shareholders of 1.34 billion yuan, up 84.1% year-on-year [8] - The company’s revenue and net profit for Q4 2024 were 860 million yuan and 370 million yuan, respectively, showing a year-on-year increase of 17.0% and 26.2% [8] - The company’s revenue for Q1 2025 was 940 million yuan, a year-on-year increase of 29.1%, with a net profit of 340 million yuan, up 21.1% year-on-year [8] Revenue and Profit Forecast - The company’s total revenue is projected to reach 5.03 billion yuan in 2025, with a year-on-year growth of 54.7%, and a net profit of 2.04 billion yuan, reflecting a growth of 51.6% [1][9] - The earnings per share (EPS) are expected to be 3.68 yuan in 2025, with a price-to-earnings (P/E) ratio of 19.1 based on the closing price on April 25, 2025 [1][9] Market Data - The closing price of the company is 70.24 yuan, with a market capitalization of approximately 38.91 billion yuan [6] - The company has a price-to-book (P/B) ratio of 8.97 and a net asset value per share of 7.83 yuan [6][7] Research and Development - The company has increased its R&D investment by 62.1% to 230 million yuan in 2024, focusing on core technologies in silicon photonics and CPO [8]

Summary of Tianfu Communication Conference Call Company Overview - **Company**: Tianfu Communication - **Industry**: Optical Communication Key Financial Performance - **2024 Q4 Revenue**: 857 million CNY, a quarter-on-quarter increase of 2.18% [2] - **2024 Q4 Net Profit**: 367 million CNY, a quarter-on-quarter increase of 14% [2] - **2024 Annual Revenue**: 3.252 billion CNY, a year-on-year increase of 67.7% [3] - **2024 Annual Net Profit**: 344 million CNY, a year-on-year increase of 84% [3] - **2025 Q1 Revenue**: 945 million CNY, a year-on-year increase of 29% [2][5] - **2025 Q1 Net Profit**: 30.38 million CNY, a year-on-year increase of 21% [2][5] - **Gross Margin**: 53% in Q1 2025, slightly down due to USD depreciation and lower capacity utilization during the Spring Festival [2][6] - **R&D Expenses**: 232 million CNY in 2024, a year-on-year increase of 62% [2][3] Operational Insights - **Production Management**: Optimization of ERP and MES systems to enhance sales forecasting and production planning accuracy [2][3] - **Inventory Turnover**: Inventory turnover rate of 4.6 times, accounts receivable turnover rate of 5.4 times, both improved year-on-year [3] - **Debt Ratios**: Debt-to-asset ratio of 15.85%, current ratio of 4.85, indicating strong solvency [3] Product Development and Market Trends - **800G and 1.6T Products**: 800G product growth was stable in 2024, while 1.6T products are expected to ramp up in 2025, with orders beginning to increase [2][8] - **Market Demand**: Demand for 1.6T products is expected to follow customer pace, with overall industry demand needing further evaluation based on tariff situations [15] - **Silicon Photonics Technology**: Anticipated significant increase in the application of silicon photonics technology by 2027, with the company actively participating in the CPU supply chain [4][25] Capacity Expansion and Challenges - **Capacity Expansion**: Plans to expand capacity overseas to mitigate potential tariff risks, with a focus on Thailand [4][12] - **Production Challenges**: Difficulties in expanding optical device categories in Thailand compared to module packaging lines, requiring 6 to 12 months to achieve domestic production levels [4][13] - **Component Shortages**: Previous capacity and personnel issues led to shortages in certain components, with ongoing supply challenges in specific product categories [10][11] Strategic Outlook - **Engine Business**: Progress in the engine business is slow, with a focus on high-speed products rather than transitioning production overseas [18] - **Future Workforce Expansion**: Plans to expand workforce in Thailand based on order conditions, currently employing over 100 people [24] - **Profitability Insights**: High profit margins in active components do not necessarily reflect overall industry health, as companies are working to reduce costs [24] Conclusion - **Overall Performance**: Tianfu Communication shows strong financial growth and operational improvements, with a strategic focus on expanding capacity and leveraging new technologies in the optical communication sector. The company is navigating challenges related to market demand, production capacity, and component shortages while positioning itself for future growth in high-speed optical products.

Financial Performance - In 2024, the company achieved operating revenue of CNY 3.252 billion, a year-on-year increase of 67.74% [4] - The net profit attributable to shareholders reached CNY 1.344 billion, up 84.07% compared to the previous year [4] - In Q1 2025, the company reported operating revenue of CNY 0.945 billion, a year-on-year growth of 29.11% [5] - The net profit attributable to shareholders for Q1 2025 was CNY 0.338 billion, reflecting a year-on-year increase of 21.07% [5] Market Drivers - The growth in revenue and profit is primarily driven by the accelerated development of the artificial intelligence industry and the ongoing demand for high-speed optical devices due to global data center construction [5] - Continuous investment in R&D and improvements in automation and cost reduction have also contributed to revenue growth [5] Operational Updates - The first phase of the Thailand factory was successfully delivered and is operational, with the second phase on track for completion by the end of the month [6] - The company is enhancing production efficiency through detailed training plans and monitoring [6] Inventory and Cost Management - The increase in inventory levels in Q1 2025 is attributed to higher raw material reserves to meet potential production demands [9] - Fluctuations in gross margin are influenced by lower capacity utilization during the Spring Festival and rising material costs for active products [7] Tax and Financial Management - The increase in income tax expenses is a normal accounting treatment based on applicable tax rates and current profit levels [9] - The company maintains a high level of cash and equivalents, with plans for shareholder returns and investments in the Thailand factory and equipment upgrades [9] Shareholder Returns - Since 2015, the company has consistently distributed cash dividends exceeding 40% of the net profit attributable to shareholders, totaling CNY 1.506 billion [10]

Investment Rating - The investment rating for the company is "Buy" [7] Core Views - The company's performance in 2024 met expectations, with revenue of 3.252 billion yuan, a year-on-year increase of 67.7%, and a net profit of 1.344 billion yuan, up 84.1% year-on-year. The first quarter of 2025 showed a revenue of 0.945 billion yuan, a year-on-year increase of 29.11% [1][2] - The demand for optical engines driven by AI is rapidly increasing, leading to significant growth in the global data center and computing network expansion. The market for optical modules related to AI is expected to grow at a compound annual growth rate of over 20% from 2024 to 2030 [3] - The company is focusing on high-end customer needs, with ongoing R&D projects in 1.6T, silicon photonics, and CPO technologies, while optimizing production processes to reduce costs [4] - The company is projected to achieve net profits of 2.068 billion yuan, 2.922 billion yuan, and 4.016 billion yuan for 2025, 2026, and 2027 respectively, with a PE ratio of 25 for 2025 [5] Summary by Sections Financial Performance - In 2024, the company reported a revenue of 3.252 billion yuan and a net profit of 1.344 billion yuan, with a gross margin of 57.22% and a net margin of 41.3% [1][2] - For the first quarter of 2025, revenue was 0.945 billion yuan, with a net profit of 0.338 billion yuan, reflecting a slight decline due to seasonal factors [2] Market Outlook - The company is well-positioned to benefit from the growing demand for high-speed optical modules, particularly with the upcoming release of 1.6T products [3][4] - The global expansion of data centers and computing networks is expected to drive significant growth in the optical module market [3] Profit Forecast and Valuation - The company is expected to maintain strong profit growth, with projected net profits increasing significantly over the next few years, indicating a robust growth trajectory [5]

关于更换持续督导保荐代表人的公告 本公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有虚 假记载、误导性陈述或重大遗漏。 苏州天孚光通信股份有限公司（以下简称"公司"）于 2025 年 4 月 23 日收 到公司 2020 年向特定对象发行股票的保荐机构华泰联合证券有限责任公司（以 下简称"华泰联合证券"）出具的《关于更换苏州天孚光通信股份有限公司 2020 年向特定对象发行股票持续督导保荐代表人的函》，华泰联合证券原委派钱亚明 先生和涂清澄先生为公司持续督导工作的保荐代表人，因涂清澄先生工作变动调 离华泰联合证券，不能继续担任持续督导期的保荐工作，为保证持续督导工作的 有序进行，华泰联合证券委派沈树亮先生接替涂清澄先生履行公司 2020 年向特 定对象发行股票的持续督导职责。 本次保荐代表人更换后，公司 2020 年向特定对象发行股票的持续督导保荐 代表人为钱亚明先生和沈树亮先生，持续督导期至中国证券监督管理委员会和深 圳证券交易所规定的持续督导义务结束为止。 公司董事会对涂清澄先生在公司持续督导期间所做的工作表示衷心感谢！ 特此公告。 证券代码：300394 证券简称：天孚通信 公告编号：202 ...

Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Views - The company's performance in 2024 met expectations, with revenue of 3.252 billion yuan, a year-on-year increase of 67.7%, and a net profit of 1.344 billion yuan, up 84.1% year-on-year, exceeding the forecast median [1] - In Q1 2025, the company reported revenue of 0.945 billion yuan, a year-on-year increase of 29.11%, and a net profit of 0.338 billion yuan, up 21.07% year-on-year, although there was a slight quarter-on-quarter decline due to factors such as the Spring Festival holiday [2] - The demand for optical engines driven by AI is rapidly increasing, with a projected compound annual growth rate of over 20% for the optical module market from 2024 to 2030 [3] - The company is focusing on high-end customer needs, with ongoing R&D projects in 1.6T, silicon photonics, and CPO technologies, while optimizing production processes to reduce costs [4] - The company is expected to achieve net profits of 2.068 billion yuan, 2.922 billion yuan, and 4.016 billion yuan for 2025, 2026, and 2027 respectively, with a corresponding PE ratio of 25 for 2025 [5] Financial Summary - In 2024, the company is projected to have a revenue of 3.524 billion yuan, with a year-on-year growth of 68%, and a net profit of 1.344 billion yuan, reflecting an 84% increase [6] - The projected earnings per share for 2025 is 2.90 yuan, with a PE ratio of 25.03 [6]

Financial Performance - The company's revenue for Q1 2025 reached ¥944,631,274.77, representing a year-over-year increase of 29.11% compared to ¥731,670,538.96 in the same period last year[5] - Net profit attributable to shareholders was ¥337,626,696.86, up 21.07% from ¥278,877,189.59 in the previous year[5] - The company’s diluted earnings per share for the quarter were ¥0.6078, reflecting a 20.69% increase from ¥0.5036 in the same period last year[5] - Total operating revenue for the current period reached ¥944,631,274.77, an increase of 29% compared to ¥731,670,538.96 in the previous period[22] - Net profit for the current period was ¥337,728,982.68, representing a 21% increase from ¥279,823,463.52 in the previous period[23] - Total comprehensive income for the period was CNY 336,730,428.47, an increase from CNY 273,450,258.65 in the previous period, representing a growth of approximately 23.2%[24] - Basic earnings per share increased to 0.6095 from 0.5044, reflecting a growth of about 20.8% year-over-year[24] Cash Flow and Investments - Operating cash flow net amount increased significantly by 115.12%, totaling ¥293,609,336.55 compared to ¥136,489,059.49 in the same period last year[5] - Net cash flow from operating activities was CNY 293,609,336.55, up from CNY 136,489,059.49, indicating a significant increase of approximately 115.5%[26] - Cash inflow from operating activities totaled CNY 998,007,867.49, compared to CNY 691,746,571.86 in the previous period, marking an increase of around 44.3%[25] - Cash outflow for investment activities was CNY 1,194,074,876.78, compared to CNY 207,516,388.30 in the previous period, resulting in a net cash flow from investment activities of -CNY 312,278,793.95[26] - The company received CNY 880,000,000.00 from the recovery of investments, significantly higher than CNY 435,000,000.00 in the previous period, representing an increase of about 102.6%[26] - The company reported cash and cash equivalents at the end of the period of CNY 1,959,766,473.92, down from CNY 2,236,437,155.12, a decrease of approximately 12.4%[26] - The company’s net increase in cash and cash equivalents was -CNY 18,721,670.43, contrasting with an increase of CNY 408,734,890.51 in the previous period[26] Assets and Liabilities - The company's total assets at the end of the reporting period were ¥5,209,808,463.88, reflecting a 9.99% increase from ¥4,736,726,176.30 at the end of the previous year[5] - Current assets totaled ¥3,933,807,227.50, up from ¥3,524,465,817.83, indicating a growth of 12%[19] - Non-current assets increased to ¥1,276,001,236.38 from ¥1,212,260,358.47, reflecting a growth of 5%[19] - Total liabilities rose to ¥866,680,547.67, compared to ¥750,727,452.60, which is an increase of 15%[20] - The company's equity attributable to shareholders increased by 8.97%, reaching ¥4,336,539,969.87 compared to ¥3,979,564,829.64 at the end of the previous year[5] - The company's equity attributable to shareholders reached ¥4,336,539,969.87, up from ¥3,979,564,829.64, showing an increase of 9%[20] Shareholder Information - Total number of common shareholders at the end of the reporting period is 85,487[13] - The largest shareholder, Suzhou Tianfu Renhe Investment Management Co., Ltd., holds 38.04% of shares, totaling 210,714,328 shares[13] - The second-largest shareholder, Zhu Guodong, holds 8.28% of shares, totaling 45,873,305 shares[13] - The top ten shareholders collectively hold significant stakes, with the largest three shareholders accounting for over 48% of total shares[13] - There are no changes in the number of restricted shares during the reporting period, remaining at 952,990 shares[16] - The company has no preferred shareholders or related changes in preferred stock holdings[15] Research and Development - Research and development expenses for the quarter were ¥6,149.66 million, an increase of 17.42% from ¥5,237.40 million in the same period last year[11] - Research and development expenses for the current period were ¥61,496,570.67, compared to ¥52,374,016.71 in the previous period, reflecting a 17% increase[23] Operational Insights - The company reported a significant increase in inventory, which rose by 55.49% to ¥54,440.77 million, primarily due to increased raw material stocking[10] - The company experienced a 36.27% increase in operating costs, totaling ¥44,355.11 million, driven by sales growth and product structure changes[11] - Total operating costs amounted to ¥548,186,661.59, up from ¥406,835,909.81, reflecting a 35% increase[22] - The company reported a significant increase in accounts receivable, totaling ¥766,183,649.80, compared to ¥776,325,360.10 at the beginning of the period[19] Strategic Developments - The company has not disclosed any new strategies or market expansions during this reporting period[17] - There are no new product developments or technological advancements mentioned in the conference call[17] - The company has not reported any mergers or acquisitions in the current financial period[17] - No significant changes in shareholder financing or margin lending activities were noted[14]

Core Viewpoint - The rapid development of global data center construction has benefited Tianfu Communication, leading to significant growth in revenue and net profit in 2024 [1][2]. Financial Performance - In 2024, the company achieved operating revenue of 3.252 billion yuan, a year-on-year increase of approximately 67.74%, and a net profit attributable to shareholders of over 1.344 billion yuan, up about 84.07% [2][4]. - The company has experienced continuous growth in revenue and net profit for seven consecutive years from 2018 to 2024, with net profit growth exceeding 80% for two consecutive years in 2023 and 2024 [1][4]. - Operating cash flow for 2024 was 1.263 billion yuan, reflecting a year-on-year increase of about 39.99% [4]. Business Operations - The company specializes in the research, mass production, and sales of high-speed optical devices, positioning itself as a leading provider of optical device solutions and advanced packaging services [1][6]. - In 2024, the production and sales volume of optical communication components reached 332 million and 209 million units, respectively, representing year-on-year growth of 14.27% and 15.18% [3]. R&D and Technological Advancements - The company has significantly increased its R&D investment from 77 million yuan in 2020 to 232 million yuan in 2024, focusing on advanced materials and optical technologies [6]. - Tianfu Communication has established R&D centers in Suzhou, Shenzhen, and Japan, gathering top talent to innovate in optical device design and development [6]. Competitive Advantages - The company boasts industry-leading mass production capabilities, producing over 100 million products annually for global customers [7]. - Financially, the company maintains a healthy balance sheet with a debt-to-asset ratio of only 15.85% and cash reserves of 1.978 billion yuan as of the end of 2024 [7]. Dividend Policy - Since its listing in 2015, the company has distributed a total of 1.783 billion yuan in cash dividends, with an average dividend payout ratio of 47.05% [7].