Suzhou TFC Optical Communication (300394) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached ¥1.56 billion, up 134.27% year-over-year, driven by AI and data center demand.

• Net profit attributable to shareholders was ¥654 million, up 177.20% year-over-year; Q2 net profit rose 34.58% sequentially.

• Gross margin improved, with both active and passive optical product lines showing strong growth.

• Overseas revenue share continued to rise, with significant expansion in Asia (ex-China) and North America.

• R&D investment increased 76.64% year-over-year to ¥112 million, supporting next-gen product development.

Financial highlights

• Operating cash flow was ¥480 million, up 65.90% year-over-year.

• Basic EPS was ¥1.1824, up 97.53% year-over-year; diluted EPS was ¥1.1813.

• Total assets at period end were ¥4.36 billion, up 11.83% from year-end 2023.

• Net assets attributable to shareholders reached ¥3.50 billion, up 9.73% from year-end 2023.

• Gross margin for passive optical devices was 68.94%, and for active devices 46.84%.

Outlook and guidance

• Management expects continued strong demand for high-speed optical components from global AI and data center expansion.

• Overseas production capacity (Thailand) and Singapore HQ ramp-up to support global customer needs.

• Company will focus on core business, global layout, and R&D to drive sustainable growth.