Dongshan Precision (002384.SZ): What's New from Citi 2026 China Conference

DSBJ joined Citi's China Conference today. Key takeaways include (1) Transceiver's net margin exceeded 29% in 3Q26, and Co. believes profitability could improve further as internally produced optical-chip economics become fully reflected. (2) 1.6T deliveries in 2026 is constrained by DSP shortages, and Co. expects tight supply of 3nm DSPs may ease as foundry capacity expands in 2Q27. (3) Newly installed tools require more than a quarter for commissioning and qualification, and Co. favors mature 3-inch InP substrates over a near-term transition to 4- or 6-inch wafers to protect deliveries. (4) Thailand transceiver capacity began trial production in September 2026 and volume production in November; first phase comprises two buildings designed for 1.5mn units per month, and losses are expected to slightly narrow in 4Q. Planned 2027 capacity for 800G and 1.6T combined is at least 35mn units, with 2027 DSP largely reserved and no customer order cancellations. PCB: the iOS business is expect