J.P. Morgan Asia Technology Tracker 11 Jun 26 Largan Precision Co Ltd; Asian Semis; Foundries; Taiwan ODMs; Delta Electronics and More

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J.P. Morgan Asia Technology Tracker 11 Jun 26 Largan Precision Co Ltd; Asian Semis; Foundries; Taiwan ODMs; Delta Electronics and More

Asia Pacific Equity Research

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Asia Technology Tracker 11 June 2026

Asia Pacific Reports/Notes

Largan Precision Co Ltd (Neutral), Taiwan

Downgrade to Neutral; As good as it gets (William Yang)

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

Neutral, as we think the company’s growth potential from variable aperture lens upgrade and solid iPhone

demand has been priced in, and the market has somewhat turned too positive on its co-packaged optics

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

market for Largan and would require Largan’s expertise in precision requirements. However, we think there

are still uncertainties on how Largan could 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 more concrete progress. Our new

2026E/27E EPS are still 7%/5% above BBGe due to better iPhone demand estimates, but we think

valuation would become demanding for further re-rating (currently already trading at 20x 12M fwd P/E,

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

Asian Semis