Analysis Report on the Strong Performance of Tianfu Communication (300394)

Tianfu Communication (300394) rose strongly by 19.19% on December 8, 2025, hitting a new historical high of 238.50 yuan, with a trading volume of 712,400 shares that day, far higher than the average volume of 383,500 shares [0]. Its strong performance is driven by multiple factors:

1. Fundamental support
   : The company’s Q3 2025 revenue increased by 74.37% year-on-year, net profit by 75.68% year-on-year; it has ample cash flow (4 billion yuan in cash management) and sound governance structure [1].
2. Leading technical advantages
   : It has mass production capabilities for 800G and 1.6T high-speed optical engines; its products cover active/passive optical devices, applied in hot fields such as data centers, 5G, and AI computing infrastructure, directly benefiting from the AI infrastructure construction boom [1][3].
3. Sector linkage effect
   : The optical communication and AI computing power sectors were overall active; the Communication Equipment Index (931160) rose by 6.50% that day; related concept stocks such as Accelink Technologies and Lante Optics performed synchronously, forming a sector effect [2][3].
4. Institutional capital inflow
   : The financing balance increased by 1.764 billion yuan in the past 10 days, a 38.83% month-on-month growth, with high institutional participation; Guotai Haitong Securities gave a target price of 250 yuan on December 3 [1].

1. Synergistic growth of AI computing power and optical communication
   : The demand for optical communication equipment from AI infrastructure construction has increased; as a leading company in the niche segment, Tianfu Communication directly benefits from this cross-industry trend [3].
2. Resonance between technological breakthroughs and market sentiment
   : After the stock price broke through historical highs, market sentiment heated up, forming a positive cycle of ‘technological breakthrough - capital inflow - stock price rise’ [0].
3. Divergence between institutional and retail investor sentiment
   : The significant increase in institutional financing balance indicates long-term optimism, while the continuous growth of the number of shareholders and scattered chips reflect high short-term retail participation [1].

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High valuation: PE (100.51x), PB (37.75x), PS (38.57x) are all at historical highs [0].

• Short-term overbought: KDJ (K:88.4, D:77.6, J:110.1) and RSI indicators show overbought conditions, with short-term correction risks [0].
• Executive share reduction: Directors and Deputy General Manager Wang Zhihong plan to reduce holdings by no more than 475,000 shares (accounting for 0.06% of total share capital) from December 24, 2025 to March 23, 2026 [4].
• Industry competition: The optical communication field has rapid technological updates and fierce competition; if the company’s leading technical position declines, it will affect long-term competitiveness.

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Continuous growth of the optical communication and AI computing power sectors, strong market demand.

• The company’s technical advantages and production capacity layout support long-term development.

Tianfu Communication (300394)'s strong performance benefits from strong fundamentals, leading technical position, sector effect, and institutional capital inflow, but attention should be paid to risks such as excessively high valuation and short-term overbought conditions. Investors should combine their own risk preferences, pay attention to changes in technical indicators and industry dynamics, and make decisions cautiously.