Company Reports

Largan Precision is the world's largest producer of optical lenses by value. Its core competency lies in the production of plastic lenses, which are widely used in smartphone cameras. Largan has accumulated 30 years of experience in plastic lens design and has been a key beneficiary of the boom in smartphone demand since the first iPhone was launched in 2007. Specializing in new products, Largan is able to become a key contributor to the miniature camera development roadmap and foster deep relationships with top smartphone brands. As the main supplier of high-end camera lenses, Largan boasts leading lens design technology, allowing it to introduce various camera lens designs years ahead of its peers, in our view.

Largan's second quarter of 2026 revenue was TWD 13.7 billion, up 17% year-on-year. Management expects mass production of fiber array units to begin in mid-2027, versus 2028 three months ago.

Largan Precision is the world's largest producer of optical lenses by value. Its core competency lies in the production of plastic lenses, which are widely used in smartphone cameras. Largan has accumulated 30 years of experience in plastic lens design and has been a key beneficiary of the boom in smartphone demand since the first iPhone was launched in 2007. Specializing in new products, Largan is able to become a key contributor to the miniature camera development road map and foster deep relationships with top smartphone brands. As the main supplier of high-end camera lenses, Largan boasts leading lens design technology, allowing it to introduce various camera lens designs years ahead of its peers, in our view.

Largan's first-quarter revenue was TWD 15.5 billion, up 7% year on year. Gross margin was down 5.2% as management said there was an inventory write-off that offset manufacturing yield gains. Mass production of fiber array units is unlikely before 2028; this sent shares down 7% on April 17, 2026.

Largan's fourth-quarter 2025 revenue was TWD 17.2 billion, down 5% year on year. Gross margin stayed below 48% as management says there was an inventory write-off that offset manufacturing yield gains.

Largan Precision is the world's largest producer of optical lenses by value. Its core competency lies in the production of plastic lenses, which are widely used in smartphone cameras. Largan has accumulated 30 years of experience in plastic lens design and has been a key beneficiary of the boom in smartphone demand since the first iPhone was launched in 2007. Specializing in new products, Largan is able to become a key contributor to the miniature camera development road map and foster deep relationships with top smartphone brands. As the main supplier of high-end camera lenses, Largan boasts leading lens design technology, allowing it to introduce various camera lens designs years ahead of its peers, in our view.

Largan's revenue in the third quarter of 2025 was TWD 11.7 billion, down 7% year on year. Lower sales plus increased external component purchases dragged gross margin by 302 basis points from the year-ago quarter to 47.2%.

Largan's second quarter of 2025 revenue was TWD 11.7 billion, up 6% year on year on better sales to high-end Android customers. The improved product mix boosted gross margin by 524 basis points from the year-ago quarter to 53.6%. A strong Taiwan dollar led to a TWD 4.2 billion nonoperating loss.

On June 16, 2025, Xinhua cited Chinese central and provincial officials as acknowledging regional gaps in funding for subsidizing consumer electronics devices. However, the officials reassured consumers that purchases made before Dec. 31, 2025, can be eligible.

Largan Precision is the world's largest producer of optical lenses by value. Its core competency lies in the production of plastic lenses, which are widely used in smartphone cameras. Largan has accumulated 30 years of experience in plastic lens design and has been a key beneficiary of the boom in smartphone demand since the first iPhone was launched in 2007. Specializing in new products, Largan is able to become a key contributor to the miniature camera development road map and foster deep relationships with top smartphone brands. As the main supplier of high-end camera lenses, Largan boasts leading lens design technology, allowing it to introduce various camera lens designs years ahead of its peers, in our view.

Largan Precision's fiscal first-quarter revenue of TWD 14.6 billion was up 29% year on year on higher Android-related volume. Gross margin soared 546 basis points from the year-ago quarter to 54.6%. Management denied any direct impact from US tariffs in its earnings call.

Largan Precision is the world's largest producer of optical lenses by value. Its core competency lies in the production of plastic lenses, which are widely used in smartphone cameras. Largan has accumulated 30 years of experience in plastic lens design and has been a key beneficiary of the boom in smartphone demand since the first iPhone was launched in 2007. Specializing in new products, Largan is able to become a key contributor to the miniature camera development road map and foster deep relationships with top smartphone brands. As the main supplier of high-end camera lenses, we believe Largan boasts leading lens design technology, allowing it to introduce various camera lens designs years ahead of its peers.

Largan's fourth-quarter 2024 revenue was TWD 18.2 billion, up 1.8% year on year. Gross margin soared 6.3 percentage points from the year-ago quarter to 59.1%, as a customer paid a bonus after Largan hit shipment targets agreed in 2023. Largan also confirmed orders in the nascent robotics business.

We reduce our fair value estimate for Largan Precision to TWD 2,640 after management shed a dim view on the fourth quarter and confirmed market share loss. Largan appears fairly valued as there is little news on smartphone camera upgrades and competitors are gaining ground. Despite that, we think Largan’s unparalleled lens design capabilities can defend it against peers by promoting thinner camera designs while preserving image quality.

Largan Precision is the world's largest producer of optical lenses by value. Its core competency lies in the production of plastic lenses, which are widely used in smartphone cameras. Largan has accumulated 30 years of experience in plastic lens design and has been a key beneficiary of the boom in smartphone demand since the first iPhone was launched in 2007. Specializing in new products, Largan is able to become a key contributor to the miniature camera development road map and foster deep relationships with top smartphone brands. As the main supplier of high-end camera lenses, we believe Largan boasts leading lens design technology, allowing it to introduce various camera lens designs years ahead of its peers.

Largan Precision is the world's largest producer of optical lenses by value. Its core competency lies in the production of plastic lenses, which are widely used in smartphone cameras. Largan has accumulated 30 years of experience in plastic lens design and has been a key beneficiary of the boom in smartphone demand since the first iPhone was launched in 2007. Specializing in new products, Largan is able to become a key contributor to the miniature camera development road map and foster deep relationships with top smartphone brands. As the main supplier of high-end camera lenses, we believe Largan boasts leading lens design technology, allowing it to introduce various camera lens designs years ahead of its peers.

We retain our fair value estimate on Largan at TWD 3,000 after the unsurprising second-quarter earnings. While we have revised up 2024 to 2028 net profit estimates by 10% to 20% compared with our January figures, they are primarily from weaker TWD and higher interest income. Other operating metrics are little changed. Largan looks fairly valued as we see smartphone camera upgrades remain slow and have become focused on niche applications. Shares have priced in Largan’s pricing power backed by its unparalleled lens offering. We believe short-term stocking demand for fourth-quarter flagships may lead to the stock overshooting.

Largan Precision is the world's largest producer of optical lenses by value. Its core competency lies in the production of plastic lenses, which are widely used in smartphone cameras. Largan has accumulated 30 years of experience in plastic lens design and has been a key beneficiary of the boom in smartphone demand since the first iPhone was launched in 2007. Specializing in new products, Largan is able to become a key contributor to the miniature camera development road map and foster deep relationships with top smartphone brands. As the main supplier of high-end camera lenses, we believe Largan boasts leading lens design technology, allowing it to introduce various camera lens designs years ahead of its peers.

Largan Precision’s first-quarter earnings were on track with our full-year projections, suggesting continued strong demand and camera upgrades for high-end smartphones. Accordingly, we maintain our earnings forecasts for Largan and our fair value estimate of TWD 3,000 per share. We continue to believe that Largan’s shares are undervalued as the company’s margin expansion from improving product mix and production yield is not fully priced in. Larger wins in high-end Chinese smartphones and faster progress in its newly formed lithium-ion battery venture could provide further upside to our fair value estimate.

We retain our fair value estimates on Taiwanese technology companies in our coverage following a powerful earthquake and multiple strong aftershocks near the eastern city of Hualien on April 3, namely: Advantech at TWD 337; Delta Electronics at TWD 331; GlobalWafers at TWD 710; Largan at TWD 3,000; MediaTek at TWD 1,400; Sino-American Silicon at TWD 281; Taiwan Semiconductor Manufacturing Co at TWD 950 (USD 151 per ADR); United Microelectronics Corp at TWD 70; and Win Semiconductors at TWD 245 per share.