T&S Communications Co Ltd

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.

T&S Communications released its 2026 half-year report, with first-half net profit attributable to the parent reaching 176 million yuan, up 1.7% year on year. The company's operating revenue was 1.001 billion yuan, up 20.8% year on year; non-GAAP net profit attributable to the parent was 164 million yuan, down 2.6% year on year; net operating cash flow was negative 72.63 million yuan, down 156.9% year on year. Second-quarter operating revenue was 660 million yuan, up 44.2% year on year, and net profit attributable to the parent was 111 million yuan, up 17.6% year on year. The company said its main business remained stable, focusing on the optical communications sector, with optical device products used in cloud computing data centers, telecom networks and other fields, where demand continued to grow.

T&S Communications announced plans to bid for 17,200 square meters of land and invest in the construction of a Pingshan production base project, with a total investment of approximately 720 million yuan. The company said that acquiring the land use rights and investing in the project can effectively increase production capacity and output, and further improve the automation level of production equipment to meet market demand. This investment aligns with the company's overall industrial development strategy. In the first quarter of 2026, T&S Communications achieved revenue of 341 million yuan and net profit attributable to the parent company of 65.78 million yuan.