Largan Precision Surges to Record NT$7,195; 00992A Leads Taiwan Equity ETFs with 4.24% Two-Day Gain — BigGo Finance

Optical lens leader Largan Precision (3008.TW), propelled by optical communications themes, surged to an intraday record high of NT$7,195 on the 28th. The stock’s aggressive two-session limit-up run has not only fueled market speculation about its potential to join the “ten-thousand-yuan club,” but also delivered a significant performance boost to Taiwan equity ETFs with heavier Largan weightings. Among them, the actively managed Capital Technology Innovation ETF (00992A) holds 343,000 shares of Largan — the largest position among high-weighting ETFs — and posted a two-day gain of 4.24%, the strongest performance among related ETFs.

Largan closed limit-up at NT$6,915 on the 27th and extended its bullish momentum on the 28th, climbing to an intraday high of NT$7,135 before touching NT$7,195, officially breaching the NT$7,000 threshold. The optical communications sector has become the focal point of Taiwan’s equity market in this rally, with Largan — leveraging its high-precision lens alignment technology — being singled out by the market as a potential entrant into the co-packaged optics (CPO) supply chain, serving as a key catalyst for the stock’s surge.

Among 94 Taiwan equity ETFs, 35 hold Largan Precision, with 12 carrying a weighting above 3%. In addition to 00992A, these include First Financial Industrial 30 (00728.TW), the actively managed Capital Taiwan Power (00982A), and Fubon Selected High Dividend 30 (00900.TW). The 00992A holds 343,000 shares, the largest among the 12 ETFs, and benefited from Largan’s two consecutive limit-up sessions to deliver a 4.24% two-day gain — the standout performer.

Market analysts noted that if Largan successfully enters the CPO supply chain, as CPO applications expand from data center scale-out architectures to scale-up configurations — where bandwidth requirements are roughly 5 to 10 times greater — fiber array unit (FAU) volumes would rise significantly, potentially delivering substantial revenue contributions to the company. Analysts added that the future performance of Taiwan equity ETFs holding Largan warrants continued attention.

Chen Chaocheng, manager of the Capital Technology Innovation ETF, said that robust AI demand is driving earnings growth among large-cap electronics stocks, with Taiwan corporate earnings projected to grow more than 20% in 2026. He noted that the primary focus for Taiwan’s equity market and industry trends should remain on AI-related technology sectors and their supply chains, including power management, high-performance computing infrastructure, and semiconductor facility engineering, which offer higher growth potential.

Chen Chaocheng further pointed out that order visibility for Taiwanese AI supply chain companies has already extended to 2027, underscoring the sustained growth trajectory of AI opportunities. He remains bullish on names with technological advantages, stable gross margin structures, and AI growth themes.

Chen Yuanyi, manager of the Capital Taiwan Power ETF, believes that as AI computing specifications continue to upgrade, Taiwanese companies — as critical technology suppliers for AI infrastructure — support an unchanged long-term bullish outlook for Taiwan equities. From the perspective of Taiwan’s supply chain, capital flows are gradually shifting from chasing broad-based industry pricing beta toward individual companies’ technological alpha.

Chen Yuanyi emphasized that for beneficiaries of the manufacturing cycle in the second half of the year, investors need to pay closer attention to whether companies possess genuine technological leadership in areas such as specification upgrades, customer certifications, advanced processes, system integration, and mass production yields.

Notably, Largan has yet to disclose actual customers or revenue contributions from CPO products, and related themes still await further clarification from the company. Analysts cautioned that while Largan’s share price strength is expected to boost related ETF performance — and ETFs themselves offer the benefit of diversifying single-stock risk — the actual degree of benefit still depends on position weightings and the overall performance of other constituent stocks.

Taiwan’s equity market continued to advance, led by the optical communications sector, with capital flows clearly concentrating in stocks with AI and high-speed transmission themes. As a bellwether for the optical lens industry, Largan’s breakthrough above the NT$7,000 level not only reflects market expectations for its entry into the CPO supply chain but also delivers significant performance contributions to Taiwan equity ETFs holding related positions.