Gelonghui, May 23 | Guojin Securities recently reported that benefiting from the explosion of computing power demand brought about by AI, Tianfu Communications (300394.SZ) had net profit of 730 million yuan, an increase of 81%; 24Q1 continued its high growth trend, achieving net profit of 279 million yuan to mother, an increase of 203 percent. Large model iterations have brought about an exponential increase in computing power demand, and the difference between supply and demand with the single card computing power provided by Moore's Law has driven a boom cycle for optical modules. The total capital expenditure of the four major overseas cloud vendors in 24Q1 was US$44.289 billion, an increase of 31%. At the same time, they are optimistic about the annual capital expenditure guidelines. The bank is optimistic that the company is a leading supplier of platform-based optical devices in the industry, and the light engine business is expected to become a new growth pole for the company's operations. The 2024 valuation is 45 times, with a market value of 64.415 billion yuan and a target price of 162.81 yuan, giving the company a “buy” rating.