Radiant Opto-Electronics Corp (瑞儀光電), a supplier of LCD backlight modules for Apple’s iPad tablets, yesterday reported that net profit in the first half of the year grew 26 percent from the same period last year, bolstered by stronger-than-expected second-quarter earnings.
Net profit grew to NT$2.95 billion (US$98 million) in the first six months, from NT$2.34 billion a year ago, it said in a stock exchange filing. Earnings per share rose to NT$6.73 from NT$5.35, while gross margin climbed to 11.96 percent from 10.95 percent in the previous year.
Second-quarter net profit expanded 46 percent to NT$1.75 billion, or NT$3.98 per share, from the first quarter’s NT$1.2 billion, or NT$2.75 a share.
The results surpassed Credit Suisse analyst Jerry Su’s (蘇厚合) forecast of NT$1.32 billion, or NT$3.01 per share. Su has a neutral rating on Radiant.
Radiant was one of the top picks of Daiwa Capital Markets analyst Chris Lin (林首男).
“We believe Radiant will benefit from the launch of key Apple products, such as the new iPad for China, iPad mini, Macbook Pro/Air, and iMac,” Lin said in a report released on July 14.
Over the longer term, Radiant was likely to benefit from Samsung Electronics Co’s growth in notebooks and tablets, Lin said.
Lin has a “buy” rating on Radiant, with a 12-month target price of NT$180, implying 38 percent upside from its closing price of NT$130.50 yesterday.
The Greater Kaohsiung-based firm is expected to make NT$6.22 billion, or NT$14.2 per share, in net profit this year, Lin said. That would represent an increase of about 42 percent from a net profit of NT$4.39 billion, or NT$10.01 a share, last year.
Radiant’s consolidated revenue rose 20.57 percent to NT$45.51 billion in the first seven months of the year, from NT$37.75 billion a year ago.