Suzhou TFC Optical Communication Co Ltd

The three leading A-share optical module companies, Eoptolink, Zhongji Innolight, and Suzhou TFC Optical Communication, have all disclosed their 2026 half-year reports, with combined net profit attributable to shareholders totaling 22.384 billion yuan. Eoptolink reported first-half revenue of 20.91 billion yuan, up 100.34 percent year on year, and net profit attributable to shareholders of 7.529 billion yuan, up 90.98 percent. Zhongji Innolight posted revenue of 41.778 billion yuan, up 182.49 percent, and net profit attributable to shareholders of 13.651 billion yuan, up 241.7 percent. Suzhou TFC Optical Communication recorded revenue of 2.828 billion yuan, up 15.15 percent, and net profit attributable to shareholders of 1.204 billion yuan, up 33.92 percent. Zhongji Innolight said that in the past the optical module industry typically signed three-month orders, but many customers have now placed orders extending into 2027. Well-known retail investor Zhang Jianping became Zhongji Innolight's ninth-largest shareholder in the second quarter, holding 5.9348 million shares, or 0.53 percent of total share capital.

Tianfu Communication released its 2026 interim report, with net profit attributable to the parent company of 1.204 billion yuan, an increase of 305 million yuan compared with the same period last year, up 33.92% year-on-year, achieving five consecutive years of growth. The company's total operating revenue was 2.828 billion yuan, up 15.15% year-on-year; net cash inflow from operating activities was 1.001 billion yuan, up 64.57% year-on-year. The latest gross margin was 60.87%, an increase of 10.08 percentage points from the same period last year; diluted earnings per share was 1.11 yuan, up 33.55% year-on-year.

Tianfu Communication released its 2026 interim report, with net profit attributable to the parent company of 1.204 billion yuan. The company's total operating revenue was 2.828 billion yuan, and net cash inflow from operating activities was 1.001 billion yuan. The latest asset-liability ratio was 17.56%, gross margin was 60.87%, ROE was 19.27%, and diluted earnings per share was 1.11 yuan. The company had 300,800 shareholders, and the top ten shareholders held 565 million shares, accounting for 51.75% of total share capital.

On the evening of August 18, multiple listed companies on the Shanghai and Shenzhen stock exchanges released important announcements. Shenzhen Sunxing's wholly-owned subsidiary plans to invest in a high-end aluminum-based new materials project, with a planned capacity of 100,000 tons of high-end aluminum-based new materials and a first-phase investment of 400 million yuan to build an annual production line of 20,000 tons for demonstration. Luopu Skin plans to acquire a 51% stake in Mengying Technology to enter the equipment manufacturing sector. Jintian Copper is planning to spin off its controlling subsidiary Ketian Magnetics for listing. Yabang Chemical plans to publicly list and transfer 100% equity and creditor's rights of Daobo Chemical. In terms of performance, GigaDevice's net profit in the first half of the year was 6.857 billion yuan, up 1091.5% year-on-year; Puya Semiconductor's net profit attributable to the parent was 827 million yuan, up 1929.65%; Bluetrum's net profit was 480 million yuan, up 265.77%; Zhuzhou Smelter Group's net profit was 1.948 billion yuan, up 232.75%; Shandong Fiberglass's net profit was 29.2277 million yuan, up 234.89%; Yunhan Core City's net profit grew 207.69% year-on-year; Tunan Co., Ltd.'s net profit grew 167.92%; Tianshan Aluminum's net profit was 4.177 billion yuan, up 100.44%; China Securities's net profit was 7.639 billion yuan, up 69.44%; Haohua Energy's net profit grew 66.14%; Xingtong Co., Ltd.'s net profit grew 57.11%; Hengda New Materials' net profit grew 57.29%; Tianfu Communication's net profit grew 33.92%; Railway Track's net profit grew 32.38%; Guotai Haitong's net profit grew 28.74%; Huiquan Beer's net profit grew 23.26%; Jintian Copper's net profit grew 18.44%; Tibet Summit's net profit grew 18.03%; Focus Media's net profit grew 17.39%; Tebao Bio's net profit grew 11.37%; Jiangsu Financial Leasing's net profit grew 9.27%; Bank of Nanjing's net profit attributable to the parent was 13.65 billion yuan, up 8.17%; Rewei Co., Ltd.'s net profit grew 1.76%. China Unicom's net profit was 4.139 billion yuan, down 34.8% year-on-year; Huaneng Power International's net profit was 6.586 billion yuan, down 28.89%; Fuyao Glass's net profit was 3.97 billion yuan, down 17.37%; Shangtai Technology's net profit was 400 million yuan, down 16.6%; Shede Spirits' net profit was 145 million yuan, down 67.26%; Leyard's net profit was 69.1521 million yuan, down 59.74%; Zhongnan Culture's net profit was 30.587 million yuan, down 49.85%; Sunong Agricultural Development's net profit fell 32.48% year-on-year; H&T's net profit was 240 million yuan, down 32.23%; Guoguang Co., Ltd.'s net profit fell 20.39%; Jiahua Co., Ltd.'s net profit fell 9.03%; Tubao's net profit fell 7.67%; Hangmin Co., Ltd.'s net profit was 300 million yuan, down 4.59%. In terms of shareholding changes, Kangmeite shareholder Suzhou Yixing Tianxia plans to reduce its stake by no more than 1%; Jieya Co., Ltd.'s Mingyuan Fund and its concert parties plan to reduce their combined stake by no more than 4.99%; Espressif Systems' actual controller proposed a share buyback of 100 million to 200 million yuan; Huiyun Titanium obtained special financing support of no more than 22 million yuan for share repurchase. In terms of major contracts, Yakang Co., Ltd.'s subsidiary signed a computing power service procurement contract worth 868 million yuan; Hanhe Cable won a bid of about 717 million yuan for a China Southern Power Grid project; Beijing Creative Distribution Automation won a bid of about 304 million yuan for a China Southern Power Grid project; Dongwei Technology signed a sales contract worth 163 million yuan; PowerChina's newly signed contract value in the first seven months was 640.456 billion yuan, down 13% year-on-year.

Nvidia announced that its Spectrum-X Ethernet silicon photonics switches have entered full mass production, driving a broad rally in A-share CPO concept stocks. On August 17, Jones Tech scored a second consecutive 20 percent daily limit, while T&S Communications and TZTEK Technology rose more than 10 percent. Gongjin Electronics and Tianyang New Materials hit their daily limits, and Shijia Photons and TFC Communication followed higher. The switch is the world's first 200 gigabit per lane CPO Ethernet switch system to enter mass production, cutting the number of lasers to one quarter of traditional designs, reducing power consumption to one fifth, lowering optical loss from about 22 decibels to about 4 decibels, and improving signal integrity by 64 times. Among overseas suppliers, Lumentum expects scale-up products to begin volume shipments in the second half of 2027, while Coherent's scale-out CPO will start contributing revenue in the second half of this year. Both Guolian Minsheng Securities and Sinolink Securities are bullish on the industry opportunities from accelerating CPO adoption.

Tianfu Communication has launched an equity incentive plan again after three years, planning to grant 2.2887 million restricted shares to 745 incentive recipients at 120 yuan per share. The grant price is about half of the closing price of 240.05 yuan on August 12, giving the recipients a combined paper gain of 275 million yuan. The plan is the 2026 restricted stock incentive plan, the company's second equity incentive plan after 2023. Since 2025, Tianfu Communication's share price has risen by more than 1197% at its peak. The performance assessment targets require net profit growth from 2027 to 2029 compared with 2025 to be no less than 120%, 320%, and 560% respectively. If the targets are not met, the corresponding shares will be cancelled and become void. The company expects net profit in the first half of 2026 to be between 1.124 billion yuan and 1.304 billion yuan, up 25% to 45% year on year. Net profit attributable to the parent company for the full year 2025 was 2.017 billion yuan, up 50.15% year on year.

On August 4, the communication equipment sector rose 3.76% intraday. Xintian Technology gained 20.04%, Guangku Technology rose 11.84%, Tianfu Communication advanced 10.03%, Shijia Technology climbed 10.01%, and Tongyu Communication added 9.41%. In news, Nvidia has shipped its next-generation Spectrum-X CPO switches to select partners, while Broadcom continues small-volume shipments of its 51.2T Bailly CPO switch, marking the official entry of co-packaged optics into mass production. According to CCTV Finance, in the first half of this year, China's exports of laser transceiver modules and integrated circuits used in optical communication equipment for AI computing power construction rose 22.3% and 88.7% year-on-year respectively. Exports of domestically produced intelligent bionic robots have surpassed 10,000 units, and exports of domestically made intelligent handling robots and welding robots each grew more than 60%. Data from market research firm LightCounting shows that the global optical module market exceeded 15 billion US dollars in 2024 and is expected to surpass 20 billion US dollars in 2025. AI data center optical modules account for over 60% of the market, 800G optical module shipments rose more than 300% year-on-year, and 1.6T optical modules have begun small-batch deliveries. Chinese optical module manufacturers held approximately 45% of the global market share in 2024. Optical chips, a core upstream component, account for about 30% to 50% of optical module costs. Domestic manufacturers still rely on imports for high-speed optical chips at 25G and above, but the domestic substitution process is expected to accelerate.

As of 10:22 a.m. on August 4, 2026, the CSI Communication Services Index briefly surged over 5% and is now up 4.48%. Communication ETF Southern recorded intraday turnover of 9.24%, with trading volume reaching 32.101 million yuan. In related news, the China Academy of Information and Communications Technology estimates that China's artificial intelligence industry scale exceeded 1.2 trillion yuan in 2025, up 40% year-on-year. As of June 2026, the number of AI enterprises surpassed 6,600, accounting for 15% of the global total. Institutional research reports note that capital expenditure by the four major North American cloud providers maintained rapid growth in the second quarter of calendar year 2026, with several further raising their full-year 2026 guidance. Optical interconnects, as a critical link in cluster networks, will continue to grow at a high speed, and the medium- to long-term outlook for the optical communication sector is positive. Communication ETF Southern closely tracks the CSI Communication Services Index, with its top ten holdings including Zhongji Innolight, Eoptolink, and TFC Communication.

After the recent sharp pullback in China's A-share tech sector, analysts point out that the underlying logic supporting the tech bull market remains intact, and the correction has instead provided more cost-effective positioning opportunities. They recommend focusing on dip-buying chances in optical communications, semiconductor equipment, and commercial aerospace. In optical communications, the computing power race driven by generative AI continues, with the peak shipment cycle for 800G products and the upgrade cycle to 1.6T approaching. Chinese manufacturers hold solid global competitive advantages. Eoptolink Technology expects first-half net profit attributable to shareholders of 7 billion to 8 billion yuan, up 77.56% to 102.93% year-on-year. Suzhou TFC Optical Communication expects first-half net profit attributable to shareholders of 1.124 billion to 1.304 billion yuan, up 25% to 45% year-on-year. Industrial Securities analyst Zhang Lin remains bullish on the sector and suggests paying attention to Zhongji Innolight, Eoptolink Technology, Suzhou TFC Optical Communication, and Sinopower Electronics. The semiconductor equipment industry maintains high prosperity. SEMI forecasts that global total sales of semiconductor manufacturing equipment will reach a record high of 165.9 billion US dollars in 2026, up 23.2% year-on-year. Ping An Securities analyst Yang Zhong recommends Naura Technology, Advanced Micro-Fabrication Equipment, Tuojing Technology, Hwatsing Technology, Skyverse, and Leadmicro. In the commercial aerospace sector, after valuation compression, policies continue to advance, rocket recovery technology matures, and launch costs decline. Zheshang Securities analyst Peng Lei believes China's commercial aerospace is poised to enter a rapid growth phase, with 2026 potentially becoming a dense year for recovery verification. Shanghai Hanxun, China Aerospace Times Electronics, ST Zhenlei, Chengchang Technology, Maxwell Technologies, and Sunway Communication are widely favored.

Optical communications giant Tianfu Communication has released its 2026 half-year performance forecast, projecting first-half net profit of 1.124 billion to 1.304 billion yuan, a year-on-year increase of 25% to 45%. Net profit after deducting non-recurring items is expected to be 1.089 billion to 1.284 billion yuan, up 25.56% to 48.02% year on year. The company said that the accelerated development of the global artificial intelligence industry and the construction of data centers worldwide have driven sustained and steady growth in demand for high-speed optical device products. Although tight supply of certain materials has had some impact on production ramp-up, the company has achieved year-on-year profit growth by leveraging its highly reusable common technology platform and deep vertical integration of products. In addition, during the reporting period, financial expenses rose year on year due to foreign exchange losses, which had a certain negative impact on profit growth.

On the evening of July 18, five ChiNext-listed companies—TFC Optical Communication, Xingchen Technology, Dangsheng Technology, Lizhong Group, and ThunderSoft—issued positive first-half profit alerts. TFC Optical Communication expects first-half net profit attributable to the parent of 1.124 billion to 1.304 billion yuan, up 25% to 45% year-on-year, mainly driven by global AI industry development and data center construction fueling demand for high-speed optical devices. Xingchen Technology expects first-half net profit attributable to the parent of 820 million to 900 million yuan, a surge of 583.72% to 650.42%, primarily due to a full-scale explosion in demand for edge-side AI industries. Dangsheng Technology expects first-half net profit attributable to the parent of 480 million to 530 million yuan, up 54.26% to 70.33%, benefiting from substantial sales volume growth in power, energy storage, and consumer market products. Lizhong Group expects first-half net profit attributable to the parent of 540 million to 585 million yuan, up 34.57% to 45.78%, thanks to optimized global production capacity layout and ramp-up of high-value-added products. ThunderSoft expects first-half net profit attributable to the parent of 238 million to 246 million yuan, up 50% to 55%, as the company's adherence to globalization and its AIOS strategy drives revenue growth of over 30%.