Shanghai, Jan 26, 2026, 07:28 (GMT+8) — Premarket update
- Suzhou TFC Optical Communication’s A-shares ended the day down 5.41%, closing at 189.16 yuan.
- The company pointed to robust demand fueled by AI and data centers, while also noting losses from foreign exchange.
- Brokers are zeroing in on supply constraints in critical laser chips and when faster-speed products will start rolling out.
Suzhou TFC Optical Communication Co., Ltd.’s Class A shares dropped 5.41% to 189.16 yuan by Friday’s close, setting the stage for Monday’s session. The stock has seen a volatile week, reflecting ongoing uncertainty around one of China’s top optical-component firms.
The stock has slipped 4.46% in the last week, experiencing volatile moves. On Jan. 22, it peaked at an intraday high of 200.66 yuan, then retreated by Friday.
Volatility is crucial here since Suzhou TFC plays a key role in the supply chain for high-speed optical links powering AI computing clusters and data centres. In this segment of the China market, any sign of demand shifts or supply hiccups can quickly change the dynamics.
Last week, the company projected its 2025 net profit attributable to shareholders between 1.88 billion and 2.15 billion yuan, marking a 40% to 60% rise from the prior year. It noted sustained demand driven by faster AI investment and ongoing global data-centre builds, though foreign-exchange losses pushed up finance costs. These numbers remain preliminary and unaudited.
Analyst Zhang Zhenzhen of Guojin Securities highlighted in a weekly note that earnings forecasts offer another signal demand in the sector stays strong. AI and fresh data-centre expansions continue to push orders for high-speed optical components.
Zhongyuan Securities analyst Li Luyi pointed to a pressing issue: the limited supply of upstream EML laser chips, crucial for high-speed optical links. The note warned this bottleneck might delay shipments of 800G and 1.6T products. Li expects the situation to ease as current suppliers increase output and new ones enter the market.
Dongwu Securities analyst Ou Zixing noted in a separate report that the company’s 1.6T platform is close to ramping up. He also spotlighted efforts around CPO — co-packaged optics — which pushes optical connections nearer to switching chips, trimming power use and boosting throughput. Ou maintained a “buy” rating but flagged currency fluctuations as a potential short-term risk. DFC Financial Network
The tug-of-war has sparked a “group trade” around China’s optical stocks. Daily Economic News points to Suzhou TFC as a member of the “Yi-Zhong-Tian” trio, along with Eoptolink and Zhongji Innolight—names traders tend to bundle together whenever AI-network demand surges or dips. NBD
The downside is evident. Should the yuan hold strong and foreign exchange losses widen, or if EML and other upstream bottlenecks persist beyond forecasts, quarterly delivery schedules could become erratic despite healthy end-demand. Valuations are tight, offering little margin for error as the market leans in.
Traders will be eyeing Monday’s open to see if dip-buying kicks in or if prices head for a second drop. They’ll also look for fresh broker notes that might shed light on supply and the timing of the 1.6T issuance. The next major event is the company’s 2025 annual report, set for release on April 23, per Eastmoney’s stock calendar.
