"Yi Zhongtian" releases its first performance forecast! TF Communication: Full-year net profit is expected to grow 40%-60% year-on-year, with stable growth in demand for high-speed optical devices.

Suzhou TFC Optical Communication Co., Ltd. (hereinafter referred to as "TFC Communication") expects that driven by the global artificial intelligence wave and data center expansion, the company's net profit for the full year of 2025 will achieve a significant leap. On January 21, TFC Communication issued an announcement, predicting that net profit attributable to shareholders of the listed company in 2025 will be between 1.881 billion and 2.15 billion yuan (RMB, same below), a substantial increase compared to 1.344 billion yuan in the same period last year. As a key indicator measuring the profitability of its main business, net profit excluding non-recurring gains and losses is estimated to fall between 1.829 billion and 2.108 billion yuan, up 39.19% to 60.40% year-on-year. This performance forecast reflects the direct benefits to the optical communication industry from the soaring global demand for computing power. TFC Communication pointed out that the accelerated development of the artificial intelligence industry and the progress of data center construction worldwide have brought sustained and stable growth in demand for high-speed optical device products. This trend has effectively offset some adverse macro factors, not only driving the expansion of revenue scale, but also confirming the industry’s high prosperity. Despite the upward pressure on financial costs brought by exchange rate fluctuations, the company, through dual growth in active and passive product lines and cost reductions and efficiency gains from intelligent manufacturing, has still delivered strong profit forecasts. This forward-looking guidance provides important reference for investors to assess the sustained growth potential of the AI hardware supply chain. AI Wave Drives Core Business Expansion The main driver behind the substantial expected increase in TFC Communication’s performance comes from the structural explosion in external demand. The announcement clearly states that the rapid development of the artificial intelligence industry and the global data center construction boom have directly driven demand for high-speed optical device products. As a key supplier in the optical communications sector, TFC Communication benefits from this industry beta dividend, with both active and passive product lines achieving revenue growth. In addition to demand-side pull, supply-side optimization has also contributed to profit growth. The company said that through ongoing promotion of intelligent manufacturing, it has achieved cost reduction and efficiency improvement, further increasing the profit margin. This internal operational efficiency improvement resonates with external demand expansion, jointly supporting the profit growth forecast of up to 60%. Impact of Exchange Losses and Non-Recurring Gains and Losses While overall performance remains positive, TFC Communication has also disclosed some negative disturbance factors. The announcement shows that the company, affected by exchange losses during the reporting period, saw financial expenses increase year-on-year, which had a certain negative impact on the performance growth this period. This demonstrates that exchange rate fluctuations remain an important variable impacting net profit for export-oriented manufacturing companies in the context of global business layouts. In addition, non-recurring gains and losses have contributed more to net profit. The company expects that the impact of non-recurring gains and losses on net profit in 2025 will be about 42 million to 52 million yuan, while the figure for the same period last year was 29.5374 million yuan. Although these earnings do not represent core business capability, their growth has, to some extent, contributed to the final reported performance. Risk Warning and Disclaimer The market involves risks, and investment requires caution. This article does not constitute personal investment advice, nor does it take into account the special investment objectives, financial status, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article fit their specific circumstances. Investments made accordingly are at one’s own risk.