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

DSBJ joined Citi's China Conference, with management providing updates across optical transceivers, lasers, Thailand operations and PCB. Transceiver revenue rose over 50% QoQ in 3Q26 with net margin above 29%, and the company believes profitability could improve further as internally produced optical-chip economies become fully reflected. 2026 shipments of 800G-and-above transceivers could reach several million units, while 1.6T deliveries are constrained by 3nm DSP shortages; planned 2027 capacity for 800G and 1.6T combined is at least 35mn units, with 2027 DSP largely reserved and no customer cancellations seen. Newly installed tools need more than a quarter for commissioning and qualification, so equipment arriving in 1Q27 may only contribute from late 2Q or 3Q27; the company favors mature 3-inch InP substrates to protect deliveries. Thailand transceiver capacity began trial production in September 2026 and volume production in November, with two buildings designed for 1.5mn units p