Tianfu Communications Plans Hong Kong IPO; Product Demand Growth Drives Over 40% YoY Net Profit Increase

Changjiang Business Daily Reporter Xu Yang

Tianfu Communication (300394.SZ) Accelerates Global Expansion.

On the evening of March 16, Tianfu Communication announced that the company plans to issue H-shares and list on the Hong Kong Stock Exchange. The company will appoint Ernst & Young Hong Kong as the audit firm for this issuance and listing. The funds raised will be used to expand production capacity, invest in R&D, strategic investments, and acquisitions.

Tianfu Communication is committed to becoming a leading global optical device company. Through independent R&D and acquisitions, after years of development, it has formed two core business segments: passive optical device solutions and optoelectronic advanced packaging. The company actively promotes internationalization, establishing dual headquarters, dual production bases, and multiple R&D centers worldwide.

Driven by the rapid development of the artificial intelligence industry and global data center construction, the demand for high-speed optical device products has continued to grow steadily, resulting in rapid performance growth for Tianfu Communication. According to its 2025 performance forecast, the company expects net profit attributable to shareholders of approximately 1.881 billion to 2.15 billion yuan, a year-on-year increase of 40% to 60%. This will be the company’s best annual performance to date. From 2018 to 2025, net profit attributable to shareholders will have increased for eight consecutive years.

Plans to Issue H-shares and List on the Hong Kong Stock Exchange

On the evening of March 16, Tianfu Communication announced that to continue advancing its internationalization strategy and global layout, build an international capital operation platform, better meet global customer needs, and support high-quality development, the company plans to issue shares abroad (H-shares) and list on the Main Board of the Hong Kong Stock Exchange.

The announcement states that Tianfu Communication will appoint Ernst & Young Hong Kong as the audit firm for this issuance and listing. After deducting issuance costs, the funds raised will be used for (but not limited to): expanding capacity, R&D investment, strategic investments and acquisitions, and supplementing working capital.

Founded in 2005 and listed on the ChiNext in China in 2015, Tianfu Communication is a leading provider of comprehensive optical device solutions and optoelectronic packaging manufacturing services. The company focuses on the R&D, production, and sales of high-speed optical devices. Its products are widely used in artificial intelligence, data centers, fiber-optic communications, and optical sensing.

In recent years, Tianfu Communication has actively promoted its internationalization strategy, establishing a dual-headquarters, dual manufacturing bases, and multiple R&D centers: headquarters in Suzhou and Singapore; mass production bases in Jiangxi and Thailand to offer diversified options and localized technical support; R&D centers in Japan, Shenzhen, and Suzhou.

During an investor relations event in November 2025, Tianfu Communication stated that its Thailand production base will be built in two phases. The first phase was operational by mid-2024 and is currently increasing capacity based on customer demand; the second phase will be operational within the same year, with various product lines expected to gradually increase capacity by 2026.

Financial reports show that Tianfu Communication’s export business has become a major contributor to its performance. From 2022 to the first half of 2025, export revenues were 688 million, 1.592 billion, 2.473 billion, and 1.922 billion yuan, accounting for 57.56%, 82.14%, 76.06%, and 78.28% of total revenue, respectively.

In the secondary market, Tianfu Communication’s stock price has generally been rising. On March 17, the intraday price closed at 280 yuan per share. Since the beginning of 2025, the stock has increased by over 300%, with a total market value of 217.68 billion yuan.

Maximum Profit Forecast of 2.15 Billion

With its accelerated overseas expansion, Tianfu Communication’s overall operating performance remains impressive.

In 2018, the company achieved revenue of 443 million yuan, up 31.04% year-on-year; net profit attributable to shareholders was 136 million yuan, up 21.84%; and net profit after deducting non-recurring gains and losses (hereinafter “non-recurring net profit”) was 127 million yuan, up 23.97%.

From 2019 to 2024, Tianfu Communication’s revenue, net profit attributable to shareholders, and non-recurring net profit all maintained strong growth, mostly with double-digit year-on-year increases.

According to its latest forecast for 2025, the company expects net profit attributable to shareholders of approximately 1.881 billion to 2.15 billion yuan, a 40% to 60% increase; non-recurring net profit of about 1.829 billion to 2.108 billion yuan, also up 39.19% to 60.40%. Both metrics are expected to reach record highs, with net profit surpassing 2 billion yuan for the first time. From 2018 to 2025, net profit attributable to shareholders and non-recurring net profit will have increased for eight consecutive years.

Tianfu Communication states that the projected increase in net profit attributable to shareholders in 2025 is mainly due to the accelerated development of the artificial intelligence industry and global data center construction, which drive steady growth in demand for high-speed optical devices. Coupled with ongoing cost reductions and efficiency improvements through intelligent manufacturing, this has promoted revenue growth across both active and passive product lines. Additionally, during the reporting period, exchange losses impacted financial expenses, which increased year-on-year and somewhat affected performance growth.

Furthermore, in 2025, the company estimates that non-recurring gains and losses will impact net profit by approximately 42 to 52 million yuan, compared to 29.54 million yuan in the same period last year.

Besides market demand, Tianfu Communication’s own market competitiveness is also a key factor in its steady growth.

The company reports that since going public, it has maintained high R&D investment intensity, continuously deepening its capabilities in optical device solutions and advanced optical packaging manufacturing. This has kept the company at the forefront of technology in its niche, providing strong support for customers’ new product development and accelerating the commercialization of high-speed products.

In the first three quarters of 2023-2025, R&D expenses were 143 million, 232 million, and 200 million yuan, totaling 575 million yuan over three years, with year-on-year increases of 16.74%, 62.11%, and 15.82%. R&D expense ratios were 7.39%, 7.14%, and 5.11%, respectively.

Since its IPO in 2015, including the initial public offering, Tianfu Communication has completed three rounds of equity financing, totaling 1.302 billion yuan. These funds have primarily supported its industry layout, including expansion and upgrades of optical passive devices, R&D centers, high-speed optical devices, and high-speed optical engines for 5G and data centers.

Meanwhile, Tianfu Communication actively distributes dividends, sharing its operational results with shareholders. Data shows that the company has paid dividends for 12 consecutive years, totaling 2.172 billion yuan, with a payout ratio of 166.79%. In mid-2025, the company announced a cash dividend of 5 yuan per 10 shares (tax included), totaling 389 million yuan, representing 43.23% of the net profit attributable to shareholders in the first half of 2025.