Largan Precision Co (大立光), which supplies camera lenses for Apple Inc’s iPhones and iPads, yesterday reported sales rose 77.08 percent sequentially to NT$2.83 billion (US$93.53 million) last month on increasing demand for higher-resolution handset cameras.
On an annual basis, last month’s sales mark a 74.64 percent expansion.
That brought last quarter’s revenue to NT$6.85 billion, down 26.34 percent quarter-on-quarter from NT$9.29 billion on seasonal factors. That was an annual increase of 34.4 percent from NT$5.1 billion.
The results were better than analysts’ consensus estimate of 30 percent sequential decline, Largan said.
“We have achieved solid growth last month mainly because of robust demand for camera lens, especially for those used in our client’s new products,” Largan investor relations official Josephine Huang (黃印嘉) said by telephone yesterday.
Josephine Huang said Largan’s orders were increasing at a steady pace, riding on the growing trend of using higher pixel camera lens for handsets.
In terms of pixel count, shipments of camera lenses with resolutions of more than 10 megapixels accounted for between 10 and 20 percent of Largan’s total shipments last month, while those with resolutions of 8 megapixels accounted for between 40 and 50 percent, up from a share of between 30 and 40 percent in February.
Up to 85 percent of Largan’s camera lens products shipped last month were for smartphones, with the remaining 15 percent going to tablets, Josephine Huang said.
Largan expects sales to grow further month-on-month and year-on-year this month, she said.
Daiwa Capital Markets analyst Kylie Huang (黃奎毓) said Largan’s long-term business outlook remains positive due to the pixel-migration trend, which is driven mostly by Chinese smartphone vendors.
Apple’s new orders for camera lens with optical image stabilizer (OIS) will also be a major sales contributor for Largan in the subsequent quarters, she said.
“I’m upbeat toward Largan’s sales performance this quarter and the whole year, considering the company’s leading technologies and the handset market’s movement,” Kylie Huang said.
According to Daiwa, Apple contributed more than 50 percent of Largan’s sales last month, while Chinese smartphone brands, including Xiaomi Corp (小米), Huawei (華為) and Coolpad (酷派), made up another 30 percent.
Largan’s global market share had climbed to 30 percent as of last year from 20 percent in 2012, Kylie Huang said.
Kylie Huang said she forecast Largan’s sales would achieve a 10 percent sequential growth to about NT$7.53 billion this quarter.
For the full year of this year, Largan’s revenue would break record high again to NT$34.75 billion this year, up 26.67 percent year-on-year, she forecast.