Investment Bank Research Brief
The reason for the increase is that starting from 2028, the CPO (co-packaged optics) business will drive the company's valuation revaluation and earnings into an upward cycle.
The reason for the increase is that starting from 2028, the CPO (co-packaged optics) business will drive the company's valuation revaluation and earnings into an upward cycle. At the same time, the smartphone business will benefit from the iPhone's multi-year specification upgrade cycle and its strong resilience. The report raises Largan's profit forecast for 2026-2028 by 1-13%, and uses a 25 times expected price-earnings ratio for 2028 for valuation. After the CPO business contributes in 2030, the value per share can reach NT$5,641. The market's understanding of Largan mainly remains in the field of smartphone lenses, and the long-term growth potential brought by its CPO business may be seriously underestimated. One sentence conclusion: Largan is transforming from the leader in smartphone lenses to a new star in CPO (co-packaged optics). From 2028, CPO will drive profits into an upward cycle, and the valuation will be re-evaluated. Now is a good opportunity for layout. Positive/negative: Positive for Largan Guang (3008.TT). The market's valuation of Largan is mainly based on smartphone lenses, and the long-term value of its CPO business may be seriously underestimated. A rating upgrade will trigger a revaluation. Catalysts: 1) Largan's CPO business customer certification and order progress; 2) The sustainability of iPhone optical specification upgrades; 3) Largan's quarterly financial report to verify profitability.