Suzhou Tfc Optical Communication Co.,Ltd. (TFC Optical Communication) anticipates a significant leap in its full-year net profit for 2025, driven by the global artificial intelligence wave and data center expansion. On January 21, TFC Optical Communication released an announcement forecasting its 2025 net profit attributable to shareholders of the listed company to be between 1.881 billion yuan and 2.150 billion yuan, a substantial increase from the 1.344 billion yuan recorded in the same period last year. As a key indicator of core business profitability, net profit after deducting non-recurring gains and losses is projected to be in the range of 1.829 billion yuan to 2.108 billion yuan, representing year-on-year growth of 39.19% to 60.40%. This positive earnings forecast reflects the direct benefits to the optical communication industry from the surge in global computing power demand. TFC Optical Communication pointed out that the accelerated development of the artificial intelligence sector and the global push for data center construction have led to sustained and stable growth in demand for high-speed optical device products. This trend has effectively offset adverse impacts from certain macroeconomic factors, not only driving revenue expansion but also validating the industry's high growth trajectory. Despite pressure from increased financial expenses due to exchange rate fluctuations, the company still delivered a robust profit forecast, supported by dual growth in its active and passive product lines and cost reductions and efficiency gains from smart manufacturing. This forward-looking guidance provides a crucial reference for investors assessing the continued growth potential of the AI hardware supply chain. The primary driver behind TFC Optical Communication's significant projected profit increase stems from a structural explosion in external demand. The announcement explicitly states that the rapid development of the artificial intelligence industry and the global data center construction boom have directly spurred demand for high-speed optical device products. As a key supplier in the optical communication field, TFC Optical Communication has benefited from this industry beta, with both its active and passive product lines achieving revenue growth. In addition to demand-side pull, optimization on the supply side has also contributed to profit growth. The company stated that by continuously advancing smart manufacturing, it has achieved cost reductions and efficiency improvements, further enhancing profit margins. This enhancement in internal operational efficiency resonates with the expansion in external demand, jointly supporting the projected profit growth rate of up to sixty percent. While the overall performance is positive, TFC Optical Communication also disclosed some negative disruptive factors. The announcement indicates that financial expenses increased year-on-year during the reporting period due to exchange losses, which had a certain negative impact on the current period's performance growth. This highlights that exchange rate volatility remains a significant variable affecting the net profit of export-oriented manufacturing companies within a global business layout. Furthermore, the contribution of non-recurring gains and losses to net profit has increased. The company expects the impact of non-recurring gains and losses on its 2025 net profit to be approximately 42 million yuan to 52 million yuan, compared to 29.5374 million yuan in the same period last year. Although this portion of income does not represent core business capability, its growth has, to some extent, bolstered the final reported earnings.
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