Largan Precision (3008 TT, NT$3,950)- CPO mass production starts earlier than expected

研报英文原文证据摘录

Largan Precision (3008 TT, NT$3,950)- CPO mass production starts earlier than expected

mass production earlier than expected

Largan has engaged one customer who is willing to allocate its mass production order (one

row Fiber Array product) to Largan, and Largan has received formal specifications. Largan

expects to send samples for qualification this month (July/26), and the customer will try to

Source: CMoney qualify them in 2~4 weeks. As mentioned earlier, Largan’s internal pilot production line is

What’s changed expected to be ready in September. If the qualification process goes smoothly, Largan will

New Old % try to have its mass production lines ready in mid-FY27 and start mass production in 3Q27.

Rating Buy Neutral

This schedule is earlier than we previously expected, i.e. FY28. Regarding the potential

Target price (NT$) 6340 5290 20

competitor/competing technology, GlassBridge from Corning, Largan thinks that it isEPS forecast (NT$) 211.47 211.47 0

Target PE (x) 30 25 actually a different technology by using new EC (Edge Coupling) technology instead of the

current mainstream GC (Grating Coupling) technology, which is what Largan is focusing on.

Financial summary Year-end: Dec 31

Even if EC is qualified, Largan thinks that GC’s market share will remain significantly larger

NT$mn FY25 FY26F FY27F

Net sales 61,148 68,766 72,496 than EC’s. In addition, Largan also emphasized that its core competitiveness in CPO lies in

YoY growth (%) 2.8 12.5 5.4 its unique “alignment technology”, which can perfectly align the V-groove with the optical

Op. profit 23,558 26,755 28,932

fiber with tolerance through its in-house designed automation equipment, greatly

YoY growth (%) -2.0 13.6 8.1

Net profit 21,275 25,606 27,769 improving optical transmission efficiency.