Largan Precision Stock Surges on Optical Communication and Smartphone Lens Prospects

Largan Precision, a leading optical lens manufacturer, experienced a significant stock price increase, hitting its upper limit of NT$4,345 on Tuesday. The surge was fueled by optimistic projections shared during the company's investor conference last Thursday, particularly concerning its optical communication and smartphone lens segments.

During the conference, Chairman Lin En-ping revealed that Largan Precision will begin sampling its optical fiber array (FA) products to clients this month, with pilot production lines set to complete by the end of the third quarter. Mass production is anticipated by mid-2025, with these new products expected to contribute to revenue. In the smartphone lens sector, the upcoming release of new iPhones is expected to boost customer demand in July and August.

Analysts hold a positive view of Largan's established position in the smartphone lens market and its ongoing development of new products. The company's strategic expansion into optical communications is seen as a key growth driver.

However, investors are cautioned about potential stock price fluctuations. Last Thursday, foreign investors sold 485 Largan shares, while local institutional investors and proprietary traders bought 23 and 13 shares, respectively, resulting in a net sale of 449 shares by major institutional investors. Day trading volume recently has hovered around 30-40% of total turnover, indicating a speculative element that could impact future price movements.