Analysis of the Impact of Tianfu Communication (300394.SZ) H-share Listing Plan on Its Valuation System

As a leading enterprise in the optical module sector, Tianfu Communication has seen strong stock price performance driven by the AI computing power boom. As of December 30, 2025, the company’s market capitalization has exceeded RMB 165 billion, with a cumulative increase of over 230% in 2025, currently in a historical high range [0]. Key valuation indicators show:

Listing on both A-share and H-share markets will bring significant valuation convergence pressure. Based on historical data analysis, the average A/H premium for the communication equipment sector is about 38.5%, while the current PE valuation of the Hang Seng Tech Index is only 28.5x, far lower than Tianfu Communication’s A-share PE of 90x. This means that after the H-share listing, the company may face a valuation adjustment pressure of 10-25%:

####2.

Listing on H-share will bring multiple liquidity advantages to the company:

• Diversified financing channels
  : As an international financial center, Hong Kong can provide the company with more convenient international financing channels to support its overseas expansion strategy [1]
• Optimized investor structure
  : Introduce international institutional investors, enhance shareholder diversification, and improve market stability
• Inclusion in Stock Connect mechanism
  : Mainland investors can participate directly in trading, broadening funding sources
• Enhanced corporate governance
  : The strict disclosure and governance standards of HKEX will further improve the company’s governance level

####3.

Listing on H-share will form a cross-market arbitrage mechanism between A-share and H-share:

• The correlation between stock prices in the two markets will be significantly enhanced, and the efficiency of price discovery will be improved
• Cross-market capital allocation will be more flexible, helping to smooth stock price fluctuations
• In the long run, the A/H premium is expected to gradually narrow to a reasonable range

###3. Phased Impact Assessment

• Valuation may face an adjustment pressure of 10-25%, reflecting expectations of valuation convergence
• Stock price volatility may increase significantly
• Market sentiment may be affected by the progress of H-share listing

• Valuation system gradually aligns with international standards
• Liquidity premium gradually emerges
• The proportion of institutional investors is expected to increase

• Form a stable valuation system in both markets
• Corporate governance and transparency continue to improve
• Gain recognition from international capital markets, expanding brand influence

###4. Key Influencing Factors

1. Industry prosperity
   : Sustained growth in demand for AI optical modules is the foundation for supporting high valuation [1]
2. Sustainability of performance growth
   : Whether high ROE (40.99%) and net profit margin (38.37%) can be maintained [0]
3. HK stock market environment
   : The overall valuation level of HK stocks will affect H-share pricing
4. International investors’ perception
   : The degree of understanding of the company’s business model and growth potential by overseas institutions

###5. Conclusion

Tianfu Communication’s H-share listing plan is a “double-edged sword”. In the short term, it may face valuation compression pressure, but in the long run, the establishment of an international capital operation platform will help improve corporate governance, broaden financing channels, and enhance international visibility. For investors, it is necessary to pay attention to the progress of H-share listing, the fulfillment of performance commitments, and changes in the industry competition pattern, and carefully evaluate the risk of valuation system adjustment.

[0] Jinling API Data - Company Overview and Financial Indicators of Tianfu Communication (300394.SZ)

[1] Ebrun - “The Richest Man in Yichun with 160 Billion Yuan is Going to Ring the IPO Bell” (https://m.ebrun.com/632433.html)