Shares of smartphone camera lens supplier Largan Precision Co (大立光) received a boost yesterday after the company proposed paying out record-high cash dividends, dealers said.
Many investors also have high hopes that Largan’s bottom line will further improve this year on expectations that smartphone brands, in particular Apple Inc, will unveil new models to attract consumers, they said.
In addition, buying was sparked by Barclays Capital’s raising its target price for Largan shares to NT$1,700 from NT$1,360 amid optimism over the company’s earnings prospects, they added.
Shares of Largan added 2.91 percent to close at NT$1,415.
In a statement released on Tuesday, Largan said its board had proposed distributing a cash dividend of NT$28.50 per share for last year, up from the NT$17 recorded in 2012.
The latest dividend payout, if approved by shareholders in an annual general meeting on June 18, will be the highest in the company’s history.
The dividend proposal came after Largan posted record-high earnings per share (EPS) of NT$71.64 last year, as the company took the lead over its peers in production technology, which helped it to secure more orders.
However, based on last year’s EPS, the dividend payout ratio would only be 39.8 percent, lower than the 40.9 percent recorded in 2012, when Largan’s EPS was NT$41.58. Largan said the lower dividend payout ratio reflected the need for the company to keep more cash in hand for future expansion.
With its earnings on the rise, Largan has also proposed giving out NT$1.732 billion (US$56.9 million) in bonuses to its employees, up 72.7 percent from a year earlier. That would give its employees an average bonus of NT$600,000.