Guinness Asian Equity Income Fund on Largan Precision
Thesis
Largan Precision is benefiting from an improving smartphone camera cycle, supported by stronger premium handset demand and increasing camera specification content. The company also has an emerging opportunity beyond smartphones through optical components for AI data centres. Its fibre-array and prism and micro-lens technology has been linked to Nvidia's co-packaged optics supply chain. An initial CPO-related order and preparation of an automated pilot line could establish optical interconnects as an additional earnings driver over time.
“The company also secured its first order associated with the CPO business and is preparing an automated pilot line, reinforcing expectations that optical interconnects could become a meaningful additional earnings driver over time.”
Key risks
- Weakness in premium smartphone demand
- Execution risk as the company expands into AI data-centre optical components