TAIPEI — Optical lens manufacturer Largan Precision (TWSE: 3008) reported a significant exchange loss of NT$4.2 billion in its second quarter financial results, attributed to the sharp appreciation of the Taiwan dollar. The currency impact prompted a mixed response from foreign investment institutions, which adjusted their outlooks accordingly.
Three major firms — Daiwa, Macquarie, and Morgan Stanley — released separate reports following Largan’s earnings announcement. Daiwa Securities maintained its “Hold” rating but lowered its target price from NT$2,375 to NT$2,275, citing currency headwinds and uncertain near-term demand. Meanwhile, Macquarie and Morgan Stanley both reiterated “Outperform” ratings, with respective price targets of NT$2,980 and NT$2,800.
Despite the currency-driven financial hit, analysts highlighted Largan’s stronger-than-expected gross margin performance. Daiwa attributed the margin resilience to a favorable product mix, supported by early orders of camera lenses for the upcoming iPhone 17, suggesting a more profitable sales structure in Q2.
However, the firm also warned that iPhone demand may weaken in the second half of 2025, as many consumers had already upgraded their devices earlier this year. Daiwa advised investors to remain cautious until a more definitive rebound in iPhone sales materializes.
On the innovation front, Macquarie pointed to Largan’s efforts to diversify into new application areas, including AI-driven robotics and smart glasses. The company is preparing for small-scale trial production of humanoid robot components in the latter half of 2025, aligning with the broader trend of AI integration into consumer technology.
Additionally, Largan is actively engaging with emerging smart eyewear brands, aiming to penetrate the growing AI wearables market. According to analysts, the company missed early opportunities with current major players in the smart glasses segment and is now attempting to close the gap through strategic outreach.
As Largan navigates currency challenges and shifting consumer demand, its push into next-generation AI applications may shape its long-term growth trajectory.
