Tianfu Communications espera que las ganancias netas en 2025 crezcan más del 50% pero no alcanzan las expectativas de las instituciones, con un motor de luz de 1.6T que completa la producción en masa, aunque el margen de beneficio bruto de los componentes de comunicación óptica cae 3.67 puntos porcentuales.

Tianf Communication (SZ300394, stock price 317.36 yuan, market value 246.7 billion yuan) released its 2025 annual report on the evening of April 7th. The company achieved approximately 5.163 billion yuan in revenue in 2025, a year-on-year increase of 58.79%; net profit attributable to shareholders of the listed company was about 2.017 billion yuan, up 50.15% year-on-year; and net profit after deducting non-recurring gains and losses was approximately 1.976 billion yuan, an increase of 50.42%. The company plans to distribute a cash dividend of 7 yuan (including tax) for every 10 shares based on 777 million shares, and to transfer 4 shares for every 10 shares from capital reserve funds, without issuing bonus shares.

According to Tianf Communication’s performance forecast disclosed in late January, the company initially expected to achieve a net profit attributable to the parent of 1.881 billion to 2.15 billion yuan in 2025, with a year-on-year growth of 40% to 60%, so the actual disclosed figures are positioned in the middle of this expected range.

Gross profit margin of optical communication components declines by 3.67 percentage points

From a vertical perspective, this marks Tianf Communication’s first time in a single fiscal year surpassing 5 billion yuan in revenue, and the net profit attributable to the parent has first exceeded 2 billion yuan. Quarterly-wise, Tianf Communication achieved approximately 1.245 billion yuan in revenue in Q4 2025, a 45.28% increase year-on-year, but a 14.87% decrease quarter-on-quarter; net profit attributable to the parent was about 552 million yuan, up 50.35% year-on-year but down 2.51% quarter-on-quarter.

In addition to performance growth, the annual report shows that net cash flow from operating activities during the reporting period increased by 47.97% to 1.868 billion yuan.

According to data compiled from Wind Financial Terminal, 21 institutions’ consensus forecasts for Tianf Communication’s 2025 revenue and net profit attributable to the parent are approximately 5.591 billion yuan and 2.105 billion yuan, respectively. Therefore, based on the disclosed data, the actual figures are below expectations, with the disclosed values being 7.65% and 4.16% less than the consensus forecasts.

Source: Wind

In terms of R&D, Tianf Communication’s annual R&D investment increased by nearly 15%, with the R&D team expanding by over 40%, and nearly 200 patents domestically and internationally.

In the optical module and core device business, market attention mainly focuses on the speed of technological iteration. The annual report clearly states that the company successfully completed mass production of 1.6T optical engines and the development of CPO (photonic-electronic co-packaged) supporting optical devices, laying a foundation for next-generation supercomputing centers and AI (artificial intelligence) cluster applications. Meanwhile, the company actively layouts next-generation technologies such as silicon photonics integration to build long-term core product competitiveness.

The annual report shows that the company’s core “optical communication components” output increased by 42.58%, mainly due to a year-on-year increase in the production of optical components; sales volume grew by 21.78% compared to the previous period; revenue was about 5.082 billion yuan, a 57.27% increase from about 3.232 billion yuan in the same period last year. However, the gross profit margin of this business declined from 57.29% last year to 53.62%, a decrease of 3.67 percentage points.

By product, Tianf Communication’s revenue from passive optical devices increased by 32.23% year-on-year to about 2.084 billion yuan, accounting for 40.37% of revenue, down from 48.47% in 2024; active optical devices’ revenue grew by 81.11% to about 2.998 billion yuan, accounting for 58.06% of revenue, up from 50.91%.

Among them, the gross profit margin of passive optical devices declined by 4.74 percentage points to 63.67%, while the gross profit margin of active optical devices fell by 0.06 percentage points to 46.63%.

At the same time, Tianf Communication also disclosed in the annual report that there is a risk of declining product gross profit margins. The company stated, “The high-speed optical engine project funded by issuing shares to specific targets has a relatively low gross margin. As the project’s sales increase gradually, it may reduce the company’s overall gross margin.” Additionally, the initial production phase of the Thai factory faces issues with skilled labor and capacity utilization, leading to higher overseas production costs compared to domestic, further squeezing profit margins.

Customer concentration further increases

Although the revenue scale is large, the “Daily Economic News” reporter noted that Tianf Communication’s customer structure during the reporting period was relatively concentrated — the top five customers accounted for 89.73% of the total annual sales, up from 86.8% in 2024. Among them, the company’s largest customer (Fabrinet) had sales of 3.268 billion yuan, accounting for 63.31% of the annual sales, up from 61.69% in 2024.

Source: Tianf Communication Annual Report

The annual report also shows that Tianf Communication’s export revenue share in 2025 decreased from 76.06% last year to 74.35%, but due to exchange rate fluctuations, a foreign exchange loss of 47.52 million yuan was incurred, leading to a significant 66.24% increase in financial expenses, directly eroding part of the profit.

Meanwhile, the company also mentioned in the annual report that “due to upstream capacity release pace, yield ramp-up, and other factors, some key materials in the industrial chain face phased supply tightening, longer delivery times, and price fluctuation risks, which may adversely affect order delivery, costs, gross margins, and the production speed of new products,” exposing the company’s order delivery and cost control to substantial challenges amid upstream capacity release.

Looking ahead to 2026, Tianf Communication states that this year it will continue to focus on core businesses, deepen technological breakthroughs and product iteration upgrades, respond quickly and with high quality to strategic customer demands, and proactively layout next-generation technology directions to achieve steady growth in quality and scale. Meanwhile, the company will accelerate global capacity and supply chain deployment, promote digitalization and intelligent empowerment, strengthen compliance and security governance, and drive high-quality, sustainable development.

Daily Economic News