大立光 (3008.TT): Quick Take: Largan 3Q26 sales tracking below consensus

Largan 3Q26 topline missed consensus. Revenue declined 11% YoY but increased 15% QoQ. September 2026 revenue alone was down 11% YoY and up 16% MoM in US dollar terms. The weakness was widely anticipated, reflecting the delayed shipments of the foldable iPhone, the postponement of the base-model iPhone 18, and soft Android smartphone demand. The pull-forward effect on smartphone demand may also have weighed on 3Q26 results. Looking beyond the near-term slowdown, we expect investor sentiment will be supported by the ramp-up of the variable-aperture lens and progress in the FA business. Variable-aperture shipments should ramp meaningfully in 3Q26, potentially providing support to its GPM if yields improve. On the AI front, FA products entered customer qualification in 3Q, and we expect mass production starts in 2H27. The company will host its 3Q26 earnings call on 8th Oct. We expect management to provide a more comprehensive update on its AI business and clarify the rationale for its rece