Sat, May 06, 2006 - Page 12 News List

Largan a `buy' after encouraging figures

By Jason Tan  /  STAFF REPORTER

CLSA Ltd yesterday gave a "buy" rating to Largan Precision Co (大立光), after the nation's leading maker of camera lenses again posted strong earnings results.

Largan posted revenues of NT$560 million (US$17.7 million) last month, flat compared with the previous month but up 160 percent year-on-year, the company said in a statement released yesterday.

"Supply chain checks suggested revenues [this month] will be flat or slightly higher than April's, followed by second-half momentum kicking off from June," CLSA analyst Vincent Chen (陳豊丰) wrote.

According to Chen, Largan has edges in design and production of handset-camera lenses. The company's global market share is set to reach 41 percent this year, and further climb to 50 percent next year.

Largan's shares dropped 2.6 percent to close at NT$675 on the Taiwan Stock Exchange yesterday.

Scott Lin (林耀英), Largan's chairman and chief executive, told investors on April 17 that the company expects the second quarter's momentum to remain flat.

The company's gross profit margin for the first quarter hit 61 percent, up from 42 percent a year ago.

Net income during the same period saw a rise of 356 percent to NT$822.25 million, while net sales expanded 189 percent to reach NT$1.62 billion, according to company statistics.

Earnings per share were NT$7.17 in the first three months, soaring from last year's NT$1.57.

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