Thu, Jun 12, 2014 - Page 14 News List

St Shine aiming to raise gross margin, boost colored lenses

By Camaron Kao  /  Staff reporter

Contact lens maker St Shine Optical Co (精華光學) yesterday said that it aims to raise its gross margin by between 1 and 2 percentage points from 43.91 percent a year ago as it increases its proportion of colored lenses and improves production efficiency.

Last quarter, the company reported a gross margin of 48.86 percent, up from 44 percent the previous quarter because sales of colored lenses contributed 55 percent of its revenue, up from 50 percent of its revenue the previous quarter, St Shine deputy manager Carol Chou (周華玲) said.

The gross margin for colored lenses is 5 percent higher than other products, she said.

However, the company’s revenue this quarter might register a sequential decline from NT$1.38 billion the previous quarter because of the impact of Johnson & Johnson Vision Care Inc’s cutting prices by more than 15 percent in Taiwan and lower orders from St Shine’s Japanese clients, Chou said.

From January through last month, the company posted revenue of NT$2.3 billion (US$77 million), up 17.05 percent from NT$1.97 billion a year earlier.

Sales in Taiwan accounted for 24.31 percent of the company’s revenue of NT$5.22 billion last year, while sales in Japan accounted for 55 percent, Chou said.

Shareholders yesterday approved the company’s plan to issue a record cash dividend of NT$22.5, based on last year’s net profit of NT$1.6 billion, or NT$31.61 per share.

The payout ratio of 71.18 percent this year is slightly lower than 73.41 percent last year, the company said.

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