Largan Precision Co Ltd Downgrade to Neutral; As good as it gets

研报英文原文证据摘录

Largan Precision Co Ltd Downgrade to Neutral; As good as it gets

J P M O R G A N Asia Pacific Equity Research

10 June 2026

Largan Precision Co Ltd ▼Neutral

Previous: Overweight

Downgrade to Neutral; As good as it gets 3008.TW, 3008 TT

Price (10 Jun 26):NT$4,130.00

▲Price Target (Dec-26):NT$3,600.00

Prior (Dec-26):NT$3,200.00

After Largan’s 50% share price rise in the past 1M (45% outperformance vs Taiex), Technology

ACwe downgrade to Neutral, as we think the company’s growth potential from William Yang

variable aperture lens upgrade and solid iPhone demand has been priced in, and the (886-2) 2725-9899

market has somewhat turned too positive on its co-packaged optics (CPO) william.yang@jpmorgan.com

progress. Longer term, we still like the company’s efforts into CPO, as this is a new Megan Hsueh

addressable market for Largan and would require Largan’s expertise in precision (886-2) 2725-9249

requirements. However, we think there are still uncertainties on how Largan could megan.hsueh@jpmorgan.com

J.P. Morgan Securities (Taiwan) Limited

turn this opportunity into real earnings (at least not in the next 1-2 years, in our

view) given the high competition and the incompatibility of Largan’s FAU product

with the current chip design ecosystem; we suggest waiting on the sidelines for Key Changes (FYE Dec)

more concrete progress. Our new 2026E/27E EPS are still 7%/5% above BBGe Prev Cur Δ

due to better iPhone demand estimates, but we think valuation would become Adj. EPS - 26E (NT$) 185.34 200.82 8.4%

demanding for further re-rating (currently already trading at 20x 12M fwd P/E, Adj. EPS - 27E (NT$) 188.46 211.49 12.2%

above historical avg. of 16-17x) as CPO is at least 1.5-2 years away for Largan.

Quarterly Forecasts (FYE Dec)

• Silicon Photonics or CPO.