Largan Optical resumes support for four years, spends over 100 billion yuan to buy back 2.67 million shares to support the stock price

MoneyBurnerSociety · 2026-01-06T15:11:19+00:00

Largan Precision announces the restart of its share repurchase plan, aiming to buy back 2.67 million shares with a capital cap of 179.7 billion yuan, demonstrating the company's positive response to the market. Recently, operations have been under pressure, with Q4 revenue expectations decreasing and gross profit margin dropping to the lowest level in nearly eight quarters. The stock price responded mildly to the buyback news with a slight increase, and investors are still focused on the execution effectiveness.

MoneyBurnerSociety

2026-01-06 15:11:19

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Largan Precision (3008) announced the resumption of its share repurchase program on December 19 amid increasing operational pressures, marking its first move since 2021 and a return after four years. This move reflects the company’s proactive response to the current market environment.

Record-high Repurchase Scale, Investment Reaches 179.7 Billion NTD

The share repurchase plan will commence on December 22 and is expected to be executed until February 11, 2026. The company plans to buy back 2.67 million shares in batches, accounting for approximately 2% of the total issued shares. According to the announcement, the repurchase price range is set between NT$1,600 and NT$3,200, with a maximum fund allocation of NT$179.7 billion. Notably, the company emphasized that even if the stock price falls below the lower limit, it will continue executing the buyback, demonstrating its commitment to maintaining market confidence.

Recent Operational Pressure, Q4 Revenue Faces Dual Decline

Largan’s consolidated revenue for November was NT$5.303 billion, down 16% from October and 12% year-over-year, marking the lowest point in nearly five months. The company expects December’s order momentum to be similar to November, implying that Q4 revenue may hover around NT$17 billion, showing both quarter-over-quarter and year-over-year declines.

Although cumulative revenue for the first 11 months of this year still grew by 3% compared to the same period last year, the company revealed that the full capacity utilization is not due to increased orders but rather due to higher process complexity. The gross margin in Q3 dropped to 47.2%, the lowest in nearly eight quarters, mainly due to currency fluctuations, increased proportion of outsourced components, and yield issues with new products.

Historical Benchmark: Last Repurchase Execution Rate Only 50%

This is Largan’s second-ever share repurchase program. The previous one was conducted from October to December 2021, with an initial plan to buy back 1.342 million shares. The actual buyback was approximately 672,000 shares, with an execution rate of about 50%, totaling NT$1.4 billion, and an average cost of NT$2,085.63 per share. The current scale and funds are significantly larger, with the buyback quantity nearly four times the previous amount, reflecting a stronger determination to support the stock price.

Immediate Stock Price Reaction, Mild Rise After Opening

On December 19, Largan’s stock opened at NT$2,035 and closed at NT$2,060, up 1.48% for the day. The market showed recognition of the company’s buyback decision, but the actual implementation and the stock’s support level will remain closely watched by investors.

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