Largan's 2Q26 results: CPO business accelerated, iPhone lens upgrade cycle begins (Bernstein)
Bernstein commented on Largan (3008.TT)'s second quarter results.
Bernstein commented on Largan (3008.TT)'s second quarter results. The core attraction is that its CPO (co-packaged optics) business is becoming real. The report pointed out that although 2Q26 revenue and gross profit margin were slightly lower than expected, iPhone 18 VA (variable aperture) lenses will begin large-scale shipments in the third quarter. More importantly, the management team stated that its CPO business has made substantial progress, and has accurately aligned the FAU (fiber array unit) on the microlens of the COUPE structure, achieving efficient coupling of optical fibers to PIC (photonic integrated circuits) and EIC (electronic integrated circuits). This will open up a new huge market for Largan that goes far beyond mobile phone lenses. The market's previous valuation of Largan was based more on traditional mobile phone lenses, and a breakthrough in its CPO business will constitute the core driving force for its valuation reshaping. One-sentence conclusion: Largan is transforming from a mobile phone lens giant to a supplier of key components for photonics. The breakthrough in CPO business is revolutionary and will bring about a double-click on performance and valuation. Positive/Constraint: Positive for Largan Guang (3008.TT). The fundamentals of the traditional mobile phone lens business are solid, but the imagination brought by the CPO business has not been fully priced by the market, and there is a significant gap in expectations. Catalysts: 1) 3Q26 financial report, verifying the revenue growth brought by VA lens shipments; 2) Customer certification and mass production schedule of CPO-related products (management mentioned as early as mid-2027); 3) TSMC (COUPE technology provider) partner progress in the CPO field.