LandMark Optoelectronics (3081), a Taiwanese maker of optical communication epitaxial wafers, released its financial results for the first three quarters of 2026 on Oct. 28. The company reported cumulative consolidated revenue of NT$3.688 billion, net profit attributable to the parent company of more than NT$1.407 billion, and earnings per share of NT$13.88.
Revenue reached NT$3.688 billion as margins improved
According to the latest financial data, gross profit for the first three quarters totaled NT$2.112 billion, with gross margin rising to about 57.26%. Operating profit came in at NT$1.717 billion, and the operating margin reached 46.57%.
The report said the sharp improvement in profitability was tied to a product mix increasingly concentrated in higher-margin silicon photonics applications. LandMark supplies core components used to convert electrical signals into optical signals, and its indium phosphide (InP) and gallium arsenide (GaAs) epitaxial wafers have become key parts in the current AI server upgrade cycle.
Company plans NT$1.315 billion capacity expansion
Beyond end-market demand, the ABMedia report said recent U.S. plans to further restrict the use of China-made optical transceiver modules in national security systems have reinforced a broader supply-chain shift away from China. The report said the market expects Taiwanese suppliers to benefit from order transfers, which could also support LandMark’s share in next-generation products such as 3.2T specifications.
To respond to rising orders and a short-term shortage of upstream indium phosphide substrates, LandMark said it will invest NT$1.315 billion in equipment purchases for capacity expansion. The company also signed a long-term InP substrate supply agreement with Sumitomo Electric Industries of Japan to secure upstream materials in advance.
Brokerages stay bullish as shares pull back from record high
The report said institutions including Concord Securities have assigned a bullish rating to LandMark and raised the target price to NT$3,680, while forecasting full-year EPS could challenge NT$20.
In the stock market, LandMark shares hit a record high of NT$3,610 in early September. The stock later underwent a technical correction in the middle and latter part of the month as short-term profit-taking emerged, with the closing price falling back to around NT$2,375 on Sept. 22. Even with the sharp swings, daily trading volume repeatedly stayed at several thousand lots, and foreign ownership remained stable at about 19%.
The report said shipment momentum for silicon photonics products and the pace of capacity expansion will be the main indicators to watch in the next stage.