Largan Precision (3008 TT) (Buy) - CPO components with full automation potential

研报英文原文证据摘录

Largan Precision (3008 TT) (Buy) - CPO components with full automation potential

Global Markets Research

Largan Precision 3008.TW 3008 TT 8 June 2026

EQUITY: HANDSETS

RatingCPO components with full automation potential Remains Buy

PMLA and FA demo at COMPUTEX was impressive, Target price

given the high precision (+/-0.3um) and full automation IncreasedTWD 3,290.00from TWD 4,310.00

potential Closing priceAction: Maintain Buy; TP raised to TWD4,310, implying ~22% upside 8 June 2026 TWD 3,535.00

Largan’s prism/microlens array (PMLA) and fiber array (FA), which are key elements of the CPO

fiber array unit (FAU), impressed us at COMPUTEX 2026 (Fig.1), with: 1) their superior Implied upside +21.9%

alignment technique to achieve +/-0.3um precision level for FA (despite the +/-0.5um

precision level for fiber cores, and +/-0.7um for V-groove part), added with the potential for full Market Cap (USD mn) 14,652.9

automation in the FA production, and 2) its integrated prism plus microlens solution, to reduce ADT (USD mn) 158.5

efficiency loss and assembly yield loss. We believe the full automation of FA and FAU

production/ testing processes has been one of the key hurdles for CPO technology to transform Relative performance chart

to a mass volume market (i.e. CPO optical engine [OE] to grow to 50mn+ units a year) from

currently a niche market (e.g. <50k OE production a year, mostly by semi-automated lines for

FAU/FA now). We believe Largan’s strong capability in optical design, manufacturing, and

measurement, as well as high-precision assembly and full automation capability, not to

mention its existing clean room sufficiency and its rich cash positions, would make the

company an ideal partner for customers who plan to deploy CPO. As we expect likely