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Suzhou TFC Optical Communication Co (300394) Fair Value & Analysis

Technology · CN · Market cap 271B CNY

ST Suzhou TFC Optical Communication Co 300394 · SHE
Price¥225.28
Fair Value¥32.04
Upside-85.8%
Quality67/100
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Healthy Growth
Highly profitable · 39.1% net margin
Low debt · generates free cash flow
0.19% dividend yield
Mixed vs. peers (7/13)
Wide moat 92/100
Evidence: High Range ¥24.48 – ¥90.77 Share as image

Fair value as of: Jul 16, 2026

From 26 valuation models · updated 22 days ago

Fair value updated Jul 16, 2026, revised from ¥44.86 to ¥32.04 (−28.6%) since Jul 9, 2026. Share price −7.7% over the past month.

A solid business, but screening 86% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥90.77). The favourable scenario is already priced in.
  • The model range is unusually wide (¥24.48 to ¥90.77). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (67/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥354.43 ¥6.48 Fair Value ¥32.04 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range ¥6.48 – ¥354.43 · fair‑value band ¥24.48 – ¥90.77 · the ¥225.28 price screens above the ¥32.04 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Suzhou TFC Optical Communication Co (300394) currently trades at ¥225.28, while our model-based Fair Value estimate is ¥32.04, implying the stock looks roughly 85.8% overvalued today. We read business quality at 67/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Suzhou TFC Optical Communication Co generated revenue of 5.5B CNY at a net margin of 39.1%. Revenue grew 40.8% year over year. It earns a return on equity of 42.1%. The balance sheet holds a net cash position of 2.0B CNY. Fundamentals as of Jul 16, 2026

Our scenario range runs from ¥24.48 (bear case) to ¥90.77 (bull case); at ¥225.28, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 57% below its 52-week high and 241% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -61% fair-value upside, at -86%, 300394 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ¥25.13 ¥49.40 ¥90.16 80
Residual Income ¥14.98 ¥21.38 ¥241.12 76
Rev-Margin DCF ¥17.09 ¥27.02 ¥47.91 74
All 26 models by family
DCF Models
FCF DCF ¥26.50 ¥41.04 ¥88.60 38
Owner Earnings ¥29.82 ¥66.17 ¥145.90 31
5Y Revenue Exit ¥15.81 ¥23.94 ¥40.82 39
5Y EBITDA Exit ¥26.47 ¥45.50 ¥82.85 41
5Y P/E Exit ¥30.39 ¥66.34 ¥115.65 38
10Y Revenue Exit ¥18.67 ¥34.46 ¥43.45 36
10Y EBITDA Exit ¥27.02 ¥57.95 ¥112.23 37
10Y P/E Exit ¥29.94 ¥66.58 ¥127.59 35
Earnings-Based
Graham-Dodd ¥12.58 ¥87.70 ¥123.07 54
Lynch FV ¥45.31 ¥64.73 ¥84.14 50
PEG = 1.0 ¥45.31 ¥64.73 ¥84.14 46
EPV ¥22.23 ¥25.67 ¥28.73 59
Dividend Discount
Gordon GGM ¥5.88 ¥12.85 ¥21.62 70
DDM Multi-Stage ¥5.88 ¥10.52 ¥13.39 61
Multiples
P/E Multiple ¥27.74 ¥36.99 ¥46.23 63
P/S Multiple ¥8.88 ¥11.83 ¥14.79 58
P/B Multiple ¥11.36 ¥15.14 ¥18.93 55
EV/EBIT ¥31.98 ¥41.72 ¥51.47 53
EV/EBITDA ¥25.42 ¥32.98 ¥40.54 54
EV/Revenue ¥11.03 ¥14.58 ¥18.13 43
Asset-Based
NCAV (Graham) ¥2.52 ¥3.38 ¥5.05 50
Growth DCF
Growth DCF ¥25.13 ¥49.40 ¥90.16 80
Rev-Margin DCF ¥17.09 ¥27.02 ¥47.91 74
Economic Profit
Residual Income ¥14.98 ¥21.38 ¥241.12 76
ROIC Compounder ¥25.62 ¥34.87 ¥46.71 72
Growth Earnings
Growth-Adj P/E ¥58.38 ¥83.40 ¥108.42 68

Widest divergence: Growth Earnings (¥83.40) versus Asset-Based (¥3.38). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 5.5B CNY
Revenue growth (YoY) +40.8%
Net margin 39.1%
Return on equity 42.1%
Free cash flow 1.5B CNY FY2025
P/E ratio 163.8
More key figures
Operating margin 45.5%
EPS (TTM) ¥2.79
Dividend yield 0.2%
EPS growth (YoY) +45.5%
Net cash 2.0B CNY FY2024

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 67 · Market factors (momentum, volatility) 67

Profitability 87
Margins and returns on capital today
Quality Growth 77
Are margins and returns improving?
Cashflow 75
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 22
Disciplined investing over empire-building
Low Volatility 33
Calm price path (market factor)
Momentum 85
Price trend over the last 3–12 months (market factor)
52W Momentum 76
Distance to the 52-week high (market factor)
Net Issuance 0
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Suzhou TFC Optical Communication Co., Ltd., together with its subsidiaries, provides optical sub-assembly integrated solutions and optoelectronic packaging manufacturing services in Mainland China and internationally. It operates through Optical Device Overall Solutions and Optoelectronic Advanced Packaging Business segments.

Full company description

Suzhou TFC Optical Communication Co., Ltd., together with its subsidiaries, provides optical sub-assembly integrated solutions and optoelectronic packaging manufacturing services in Mainland China and internationally. It operates through Optical Device Overall Solutions and Optoelectronic Advanced Packaging Business segments. The company offers BOX packaging technology platform/high-speed optical engine solutions; coherent optics technology platform/FAU passive sub-assembly solutions; micro-optics technology platform and product solutions; parallel optics technology platform/AOC series passive optical components solutions; passive optical components solutions for PSM/DR applications; TO packaging technology platform/high speed coaxial sub-assembly solutions; and plastic lens and fiber array solutions for SR and OBO applications. It also provides wavelength division multiplexing devices and passive module solutions; fiber optic connection solutions; WDM (AWG) alignment technology platform/MUX/De-MUX solutions; and solutions for LiDAR applications, as well as optoelectronic packaging manufacturing services for OEMs. The company's products are used in AI computing centers, data centers, optical fiber communication, and optical sensing applications. In addition, it engages in the manufacture and sale of optoelectronic devices, electric subcomponents, high-precision molds and parts, optical lenses and filters, optical wavelength division devices, and electronic components; provision of information technology consulting, software development, Internet of Things technical, trading, investment, and technology services; design, production, import, and export of automotive parts, sensor equipment, and electronic equipment; and research, development, and technical consulting for biomedical equipment. Suzhou TFC Optical Communication Co., Ltd. was founded in 2005 and is headquartered in Suzhou, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Suzhou TFC Optical Communication Co reported revenue of ¥5.2B in FY2025 versus ¥1.0B in FY2021, a compound +49.5%/yr. Reported net income was ¥2.0B in FY2025, compounding +60.2%/yr from FY2021.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
5.2B CNY
Latest YoY
+58.8%
Avg. growth/yr (3Y)
+62.8%
Avg. growth/yr (5Y)
+42.7%
Avg. growth/yr (14Y)
+31.6%
Revenue +49.5%/yr
FY21 ¥1.0B
FY22 ¥1.2B
FY23 ¥1.9B
FY24 ¥3.3B
FY25 ¥5.2B
Net income +60.2%/yr
FY21 ¥306M
FY22 ¥403M
FY23 ¥730M
FY24 ¥1.3B
FY25 ¥2.0B

300394 screens 86% overvalued. Compare with Cisco Systems, Inc →

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Cite: Fair Value Calculator (2026). "Suzhou TFC Optical Communication Co Fair Value". https://www.fairvalue-calculator.com/stock/300394

Peer Group

Communication Equipment · 284 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 67 · Top 25%
Fair Value upside −86% · Bottom 25%
Return on equity (TTM) 42% · Top 25%
Return on assets 25% · Top 25%
Net margin (TTM) 39% · Top 25%
Operating margin (TTM) 46% · Top 25%
Revenue growth 41% · Top 25%
Dividend yield (TTM) 0.2% · Bottom 25%

Valuation Multiples vs Communication Equipment median · lower = cheaper

P/E (TTM) 124.2× · Pricier than 75% of peers
P/B 49.19× · Pricier than 75% of peers
P/S (TTM) 48.81× · Pricier than 75% of peers
P/FCF 27.7× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 100 · sector 30
PAST 100 · sector 15
HEALTH 100 · sector 98
DIVIDEND 4 · sector 27

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Communication Equipment stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
Cisco Systems, Inc CSCO $119.25 $43.05 -64%
Zhongji Innolight Co 300308 ¥1,094 ¥171.09 -84%
Foxconn Industrial Internet Co 601138 ¥56.50 ¥28.65 -49%
Eoptolink Technology Inc 300502 ¥482.88 ¥155.05 -68%
Nokia Oyj NOK $11.25 $2.67 -76%
Motorola Solutions, Inc MSI $413.31 $190.43 -54%
Telefonaktiebolaget LM Ericsson (publ), ERIC $11.72 $15.96 +36%
Accton Technology Corporation 2345 2,090 TWD 846.28 TWD -60%
ZTE Corporation 000063 ¥40.00 ¥15.75 -61%
Accelink Technologies Co 002281 ¥189.45 ¥22.87 -88%

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Frequently asked questions

Is Suzhou TFC Optical Communication Co (300394) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of ¥32.04 versus a price of ¥225.28, about −86% (overvalued).
What is the fair value of 300394?
Our model-based fair value for Suzhou TFC Optical Communication Co is ¥32.04 (as of Jul 16, 2026), built from audited fundamentals. The current price is ¥225.28.
What is the quality score of 300394?
Suzhou TFC Optical Communication Co has a Quality Score of 67/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Suzhou TFC Optical Communication Co (300394)?
Suzhou TFC Optical Communication Co reported trailing-twelve-month revenue of about 5.5B CNY (latest available figure, as of Jul 16, 2026).
What is the net profit margin of 300394?
The net profit margin of Suzhou TFC Optical Communication Co is about 39.1%, meaning it keeps roughly 39.1% of revenue as net income. Based on the latest reported figures.
Does Suzhou TFC Optical Communication Co pay a dividend?
Suzhou TFC Optical Communication Co currently shows a dividend yield of about 0.15% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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