Suzhou TFC Optical Communication Co Ltd

Suzhou TFC Optical Communication Co Ltd maintains a strong liquidity position, with a current ratio of 5.72, indicating the company can easily cover its short-term liabilities with its short-term assets. The company's liquidity_fpt score is high, supported by a net operating cash flow of 480.2 million CNY and a low debt-to-equity ratio of 0.01, suggesting minimal leverage risk. However, the company's net cash position is negative after subtracting total debt, which could signal potential liquidity constraints if cash flow were to decline.

In terms of profitability, the company's return on equity (ROE) of 10.71% and return on assets (ROA) of 8.61% are both above the industry median for the Electronic Equipment & Parts sector, indicating efficient use of equity and assets to generate profit. The gross profit margin of 58.56% (482.65 million CNY on 824.28 million CNY revenue) is also robust, suggesting strong pricing power and cost control. The operating margin of 50.93% (419.78 million CNY on 824.28 million CNY revenue) further reinforces the company's profitability relative to its peers.

The company's revenue is concentrated in a few key segments, with the majority of its sales derived from optical communication products. Geographically, the company is heavily exposed to the Chinese market, with limited diversification into international markets. This concentration could pose a risk if demand in China were to decline or if regulatory pressures increase.

Looking ahead, the company is expected to maintain a stable growth trajectory, with revenue growth projected to remain in the low single digits for the current fiscal year. Capital expenditures are expected to remain negative, indicating a focus on cash generation rather than expansion. The company's capex outlook is conservative, with a focus on maintaining operational efficiency rather than aggressive investment.

The company's risk profile is moderate, with a low dilution risk and a medium liquidity risk. The risk assessment indicates that the company is not currently facing significant dilution pressure, with no near-term equity issuance expected. However, the negative net cash position after debt is a key flag to monitor, as it could become a constraint if operating cash flow were to decline.

Recent events, including analyst estimates and price targets, suggest a generally positive outlook for the company. The mean price target of 337.00 CNY and the median price target of 389.50 CNY indicate that analysts are optimistic about the company's future performance. The mean recommendation of 1.62 (on a scale of 1 to 5) further supports this view, with 7 strong-buy ratings and 4 buy ratings.

Revenue surged 58.8% year-over-year to CNY 5.16 billion in FY2026, demonstrating robust top-line growth momentum.

Net income expanded 50.1% to CNY 2.02 billion in FY2026, reflecting strong profitability expansion alongside revenue growth.

Free cash flow jumped 224.9% to CNY 1.11 billion in FY2026, highlighting exceptional cash generation capabilities.

The company maintains a negligible debt-to-equity ratio of 0.01, providing a highly conservative and stable capital structure.

The current market price of CNY 399.99 exceeds the consensus mean price target of CNY 337.00, implying limited upside potential.

The company faces medium liquidity risk, which could impact trading stability or access to short-term funding sources.

Revenue ¥1.33B, +40,8% YoY; Operating income +46,2% YoY.

• ▍Revenue ¥1.33B, +40,8% YoY
• ▍Operating income +46,2% YoY
• ▍Net income +45,8% YoY
• ▍Net margin 37.0%

Revenue ¥1.25B, +45,3% YoY; Operating income +57,7% YoY.

• ▍Revenue ¥1.25B, +45,3% YoY
• ▍Operating income +57,7% YoY
• ▍Net income +50,4% YoY
• ▍Net margin 44.3%

Revenue ¥1.46B, +74,4% YoY; Operating income +76,9% YoY.

• ▍Revenue ¥1.46B, +74,4% YoY
• ▍Operating income +76,9% YoY
• ▍Net income +75,7% YoY
• ▍Net margin 38.7%

Revenue ¥1.51B, +83,3% YoY; Operating income +51,7% YoY.

• ▍Revenue ¥1.51B, +83,3% YoY
• ▍Operating income +51,7% YoY
• ▍Net income +49,6% YoY
• ▍Net margin 37.2%

Revenue ¥944.6M; Operating income ¥394.7M.

• ▍Revenue ¥944.6M
• ▍Operating income ¥394.7M
• ▍Net margin 35.7%

Revenue ¥857.0M; Operating income ¥419.7M.

• ▍Revenue ¥857.0M
• ▍Operating income ¥419.7M
• ▍Net margin 42.8%

Revenue ¥838.8M; Operating income ¥372.3M.

• ▍Revenue ¥838.8M
• ▍Operating income ¥372.3M
• ▍Net margin 38.4%

Revenue ¥824.3M; Operating income ¥419.8M.

• ▍Revenue ¥824.3M
• ▍Operating income ¥419.8M
• ▍Net margin 45.5%

Revenue ¥5.16B, +58,8% YoY; Operating income +52,7% YoY.

• ▍Revenue ¥5.16B, +58,8% YoY
• ▍Operating income +52,7% YoY
• ▍Net income +50,1% YoY
• ▍Free cash flow +224,9% YoY
• ▍Net margin 39.1%

Revenue ¥3.25B, +67,7% YoY; Operating income +82,3% YoY.

• ▍Revenue ¥3.25B, +67,7% YoY
• ▍Operating income +82,3% YoY
• ▍Net income +84,1% YoY
• ▍Free cash flow −18,3% YoY
• ▍Net margin 41.3%

Revenue ¥1.94B, +62,0% YoY; Operating income +87,7% YoY.

• ▍Revenue ¥1.94B, +62,0% YoY
• ▍Operating income +87,7% YoY
• ▍Net income +81,1% YoY
• ▍Free cash flow +90,3% YoY
• ▍Net margin 37.6%

Revenue ¥1.20B, +15,9% YoY; Operating income +30,2% YoY.

• ▍Revenue ¥1.20B, +15,9% YoY
• ▍Operating income +30,2% YoY
• ▍Net income +31,5% YoY
• ▍Free cash flow +76,4% YoY
• ▍Net margin 33.7%