WNC (6285.TW): OCS and high-speed switch in expansion; Sep revenues +64% YoY; Buy

This report covers WNC (6285.TW). WNC's Sep revenues continued to deliver strong growth at 64% YoY (or 2% MoM), supported by the ramp up of LEO satellites, WiFi-7 upgrade, and auto connectivity business, or 6% below our previous estimates. The company's 3Q26 revenues were up 86% YoY/23% MoM to NT$48.7bn, and we expect Oct/Nov revenues to grow 66%/77% YoY to NT$15.8bn/NT$14.7bn. The company demonstrated the OCS (Optical Circuit Switching) and 1.6TbE switch during the OCP summit 2026, and we are positive on the company's expansion towards high-speed products with capabilities to offer total solution. The new switch enables 102.4Tbps of switching capacity based on 64 units of 1.6TbE NPO ports, supporting the higher bandwidth needs of AI clusters with lower power consumption;