Largan Precision (3008.TW): Phone camera upgrade + Fiber Array upside

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Largan Precision (3008.TW): Phone camera upgrade + Fiber Array upside

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09 Jul 2026 07:52:49 ET │ 17 pages

Largan Precision (3008.TW)

Phone camera upgrade + Fiber Array upside

CITI'S TAKE

Largan’s 2Q26 earnings at NT$4.7bn (down 24% QoQ, up 352% YoY) was

inline with market expectation but lower than our estimate due to

smartphone model transition. GM/OPM at 49.4%/37.7% in 2Q26, which is Buy

flat QoQ despite smaller scale. The management guides sequentially MoM Short-Term View: Upside

revenue growth in July/Aug and seeing new flagship smartphone order flow

Price (09 Jul 26 13:30) NT$3,950.00resilient YoY in 2H26. During the earnings call, Largan expects its new

business in CPO Fiber Array is ready for sampling in next few weeks and the Target price NT$6,125.00↑

mass volume production could start in 2H27 at earliest, if it gets from NT$5,325.00certification. Along with new phone camera lens upgrade into next year, we

see earnings upside. Reiterate Buy and raise TP to NT$6,125. Expected share price 55.1%

return

Fiber Array progress better than expected — Although Corning’s GlassBridge has Expected dividend yield 2.0%

attracted significant industry attention, its primary value proposition appears to be Expected total return 57.1%enabling Edge Coupler (EC) architectures rather than today’s dominant Grating

Coupler (GC) platforms. However, most commercial CPO and NPO products Market Cap NT$516,653M

expected over the next two to three years are still likely to adopt GC because it US$16,175M

supports wafer-level optical testing, provides greater packaging tolerance and

offers a more mature manufacturing ecosystem. For Largan, this suggests that the

near-term opportunity remains centered on GC-based optical engines, leveraging