Dongshan Precision (002384.SZ): Key Takeaways from Analyst Briefing: 1.6T MP from 4Q26 and CPO/NPO Likely Around 2028

Citi dialed into Dongshan Precision (DSBJ)'s 3Q26 earnings call. Key takeaways: (1) 1.6T shipments should scale from 4Q26, while 3Q26 was mainly a customer-qualification period. (2) PCB shortages are becoming a bigger constraint than laser shortages across the market, but DSPs remain Dongshan's most significant constraint; DSP deliveries may be constrained in 4Q26/1Q27, but suppliers expect significant capacity release after 2Q27. (3) CPO and NPO remain in sampling or joint development, with meaningful volume expected around 2028. (4) Management expects RPCB revenue to exceed FPCB in 2028. (5) Management expects the Thailand plant to turn profitable once transceiver production scales up. Transceivers contributed 70%+ of 3Q26 net profit, with 3Q transceiver revenue up 50%+ QoQ, and optics net margin likely reached 29%+. Citi tweaks 2026/2027/2028 net profit forecasts by 3%/0%/-4% to Rmb8.5/28.1/56.4bn and derives a new SOTP-based TP of Rmb159 (from Rmb275), maintaining Buy as it believe