Serenity’s High Conviction Bet: ShunSin ( – Pre-Market Supplement: I have a few quick points to add before the market opens. Hope everyone uses today’s earnings volatility as the perfect chance to get on board! 1. Earnings Loss Interpretation: According to TWSE (Taiwan Stock Exchange) rules, stocks that enter “disposition” must publish monthly financial reports. ShunSin triggered disposition twice in the past two months, so the Q1 loss was already fully disclosed as known information. Even with the known loss, the stock still rose more than 200%. The reason is obvious. For the deeper context, check my earlier post on the subtle implications behind ShunSin’s material announcements clarifying earnings forecasts in the Taiwan market. 2. NVDA 50,000-unit Full-Optical CPO Switch Rerate: Market rumors first claimed ShunSin landed a major Broadcom order that would drive 2026-2027 EPS up 1,200% (credibility of that news can be judged from the latent analysis above). That speculation alone pushed the stock to around NT$500. On top of that, fresh rumors of accelerated NVDA CPO timelines and Foxconn increasing its full-optical CPO switch orders to 50,000 units. Once you understand ShunSin’s critical role in the Foxconn ecosystem, it becomes clear they can essentially capture almost the entire order. Here’s a simple forward EPS valuation model for this piece: 50,000 units× USD10k packaging value = USD500 million additional revenue → 25% gross margin contributes NT$3.925 billion gross profit → After deducting incremental operating expenses (conservative 10%) + 20% tax → contributes approx. NT$1.88 billion after-tax net profit → EPS contribution ≈ NT$16.8 (for 2026-2027 combined, based on 112 million shares outstanding) If we also factor in the existing 800G traditional optical modules plus the Broadcom major order, the overall 2026-2027 EPS outlook points to NT$25–30. Applying a typical 40–60x P/E multiple for Taiwan’s CPO sector, the reasonable target price has enormous upside imagination space. Summary: Earnings misses are often the best time to test real conviction in a stock. Once you truly understand ShunSin’s “full-capture” position for high-end orders in the Foxconn ecosystem, you’ll see why NT$500 is just the starting point of the speculation — not the end. Today’s earnings shakeout is your last easy boarding opportunity before the CPO ramp truly begins! 🚀 #ShunSin# #TWO#.6451 #CPO# #SiliconPhotonics# #NVDA# #Foxconn#