Suzhou TFC Optical Communication Co: Revenue and profit soared on AI-driven demand, with strong cash flow and higher dividends

Revenue surged 57.84% and net profit rose 37.46% year-over-year in H1 2025, driven by strong AI and data center demand. Gross margin declined due to product mix and new capacity ramp-up, while global expansion and R&D investment continued.

Original document: Suzhou TFC Optical Communication Co., Ltd. Class A [300394] Interim report — Aug. 26 2025

Suzhou TFC Optical Communication has an average rating of overweight and mean price target of 70.09 yuan, according to analysts polled by FactSet.

China and the U.S. rolling back tariffs should inject positive sentiment into Hong Kong and Chinese equities, Citi Research analysts say. While the reductions will last for 90 days, bilateral discussions will continue, Pierre Lau and others write in a note. Citi flags communications infrastructure, tech hardware, solar equipment, and semiconductors as the sectors that are most sensitive to tariffs. Among the firms with the largest profit mix generated from the U.S. are: Innolight, Eoptolink, TFC Optical, Tongfu, JCET, Jinko and JA Solar. Citi prefer H- to A-shares on a 12-month basis, assuming more rate cuts in the U.S.--benefitting HKD-- than in China. It is overweight on internet, tech and consumer sectors, with top picks including Tencent, Huaneng Power, Trip.com, BYD, AIA, Atour and Anta.(fabiana.negrinochoa@wsj.com)

China and the U.S. rolling back tariffs should inject positive sentiment into Hong Kong and Chinese equities, Citi Research analysts say. While the reductions will last for 90 days, bilateral discussions will continue, Pierre Lau and others write in a note. Citi flags communications infrastructure, tech hardware, solar equipment, and semiconductors as the sectors that are most sensitive to tariffs. Among the firms with the largest profit mix generated from the U.S. are: Innolight, Eoptolink, TFC Optical, Tongfu, JCET, Jinko and JA Solar. Citi prefer H- to A-shares on a 12-month basis, assuming more rate cuts in the U.S.--benefitting HKD-- than in China. It is overweight on internet, tech and consumer sectors, with top picks including Tencent, Huaneng Power, Trip.com, BYD, AIA, Atour and Anta.(fabiana.negrinochoa@wsj.com)

Suzhou TFC Optical Communication has an average rating of overweight and mean price target of 104.50 yuan, according to analysts polled by FactSet.

Q1 2025 revenue grew 29.11% year-over-year to RMB 944.63 million, with net profit up 21.07% and operating cash flow more than doubling. Inventory buildup and higher contract liabilities signal robust demand and a positive outlook.

Original document: Suzhou TFC Optical Communication Co., Ltd. Class A [300394] Interim report — Apr. 24 2025