\u3000\u3000 Suzhou Tfc Optical Communication Co.Ltd(300394) (300394)
Event: on February 9, Suzhou Tfc Optical Communication Co.Ltd(300394) released the annual performance express of 2021. In 2021, Suzhou Tfc Optical Communication Co.Ltd(300394) is expected to achieve an operating revenue of 1.046 billion yuan, a year-on-year increase of 19.75%; The net profit attributable to the parent company was 311 million yuan, a year-on-year increase of 11.48%; The net profit deducted from non parent company was 282 million yuan, with a year-on-year increase of 7.97%.
Q4 performance exceeded expectations and reached a record high in a single quarter: according to the performance express, it is expected to achieve an operating revenue of 1.046 billion yuan in Suzhou Tfc Optical Communication Co.Ltd(300394) 2021, with a year-on-year increase of 19.75%; The net profit attributable to the parent company was 311 million yuan, a year-on-year increase of 11.48%; The net profit deducted from non parent company was 282 million yuan, with a year-on-year increase of 7.97%. The company expects to achieve a total operating revenue of 280 million yuan in 2021q4, with a year-on-year increase of 29.03%; The net profit attributable to the parent company was 98 million yuan, with a year-on-year increase of 50.77%. The performance reached a record high in a single quarter, exceeding our expectations.
In the era of digital economy, the industry demand continues to grow, and the company actively develops high-quality customers at home and abroad: in terms of downstream demand, the capital expenditure of cloud merchants in North America at the data communication end remains high, and the construction of base stations at the telecom end is gradually accelerated in the second half of the year. Thanks to the company’s active development of high-quality customers at home and abroad and the scale construction of global data centers, the demand for optical device products continues to grow, During the reporting period, the company achieved double growth in operating revenue and profit. In addition, the company acquired Arctic Optoelectronics (Shenzhen) Co., Ltd. and Suzhou Tianfu precision optics Co., Ltd. in 2020, which also contributed to the company’s revenue and profits.
The high-speed optical engine construction project has achieved mass production, and the application expansion of new products has brought new business growth points: the “high-speed optical engine construction project for 5g and data center” built by the company with raised funds has successfully achieved mass production during the reporting period after years of R & D investment. While continuously strengthening the product development and process technology level in the field of high-speed optical engine products, the company makes use of the comprehensive R & D capability of the existing optical device platform to actively expand the product application in the field of lidar and medical detection, explore the cross domain extension of the company’s core competence, seek new high-quality business growth points and seek the long-term and steady development of the company.
Profit forecast and investment rating: due to the continuous improvement of downstream demand and the company’s active development of high-quality customers at home and abroad, and the positive progress of new product research and development, we adjusted the forecast of the company’s net profit attributable to the parent company from 307 / 3.97/499 million yuan in 2021-2023 to 311 / 3.97/499 million yuan. The current market value corresponds to 43 / 34 / 27 times of PE in 2021-2023, maintaining the “buy” rating.
Risk tip: the risk that the demand for high-end optical modules does not meet the expectations; The risk of intensified competition in the optical device market; Risk of deterioration of overseas business environment.
