Largan Precision Co (大立光) yesterday said sales for next month would be higher than this month, thanks to increasing orders from clients.
“This month’s sales are likely to stay flat from last month, but the figure will pick up next month,” Largan chief executive officer Adam Lin (林恩平) told a media briefing after the annual shareholders’ meeting held at the company’s headquarters in Taichung.
Largan manufactures lenses used in cameras for smartphones and information technology products and it counts Apple Inc among its main clients. Smartphone camera lenses account for more than 80 percent of the firm’s total revenue.
Lin expects the company’s revenue to grow quarter-by-quarter this year, given the company’s seasonal pattern of strong growth momentum in the second half.
“Overall, the second half of this year is expected to outperform the first half due to traditional peak season,” he said.
Shipments of 10-megapixel and above products accounted for between 20 percent and 30 percent of last month’s sales of NT$4.41 billion (US$141.55 million), Largan said.
As the migration to higher megapixel modules in the smartphone industry continues, many clients are ordering 12-megapixel or 13-megapixel lenses, while orders for 16-megapixel lenses are also increasing, Lin said.
India increasingly appears a promising land for the smartphone industry and Largan has entered the supply chains for lens products in that market, he said.
Several other Taiwanese companies have invested in India in recent years, such as Hon Hai Precision Industry Co (鴻海精密).
“In the beginning, our products entered the Indian market along with Taiwanese smartphone brands, but now we are working directly with Indian brands,” Lin said.
He declined to elaborate on the Indian market’s contribution to the firm’s revenues, but said the company has no plan to build a new plant there for the time being.
The company’s two rented plants in Taichung are to become operational in the fourth quarter this year, and a newly built plant in Taichung is to start shipping products in the first quarter of next year, Lin said.
Current production capacity is sufficient to meet clients’ demand for this and next quarter, he added.
Shareholders yesterday approved the company’s proposal to distribute a NT$51 cash dividend per share based on last year’s net income of NT$19.43 billion, or earnings per share of NT$144.91. The distribution translates into a payout ratio of 35.19 percent, down from last year’s 39.78 percent.
Lin said Largan prefers to maintain a policy of only distributing cash dividends, because “offering cash dividends lets shareholders have more money to pay their taxes.”
The company might consider issuing stock dividends in the future, if it has a larger share capital.
“We are considering all possibilities to increase share capital,” Lin said, without elaborating.
The company has a share capital of NT$1.34 billion.
Largan’s cash dividend of NT$51 represents a dividend yield of 1.55 percent, based on the stock’s closing price of NT$3,270 yesterday in Taipei trading.
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
EXPERIMENTAL DRUG: While news about a COVID-19 vaccine is more eye-catching, developing a treatment would be more viable, the Senhwa boss said Senhwa Biosciences Inc (生華科) aims to raise NT$1.5 billion (US$50.57 million) by issuing 15 million new common shares in the third quarter of this year to fund the research of new drugs, including the experimental drug Silmitasertib for the treatment of COVID-19, the company said on Monday. That would be the firm’s largest fundraising effort after it raised more than NT$1.4 billion from an initial public offering on the Taipei Exchange (TPEX) in April 2017, chief financial officer Sarah Chang (張小萍) told the Taipei Times by telephone. The price of the new shares would depend on the firm’s average share price
NOT A PANACEA: Offering 5G services would not solve the problem of declining telecom incomes, chairman Sheih Chi-mau said, expecting a flat 5G telecom revenue Chunghwa Telecom Co (中華電信) yesterday became the nation’s first telecom to debut its 5G services, offering tiered tariffs that include a threshold of NT$599 and flat rates, as it aims to switch half of its subscribers to the 5G network within three years. Subscribers would have unlimited data transmission for monthly fees starting at NT$1,399 — the same flat rate as when the company launched its 4G service in 2014 — and they can subscribe to the highest-rate plan for NT$2,699 per month for faster data transmission speeds and larger bandwidth, the company said. Data transmission speeds would be within the range
ROW: A probe would determine if the rights of shareholders who were not allowed to vote yesterday had been violated, while the stock exchange also wants answers The election of board directors yesterday at Tatung Co (大同) sparked controversy after the company blocked some institutional and individual shareholders from participating in the general shareholders’ meeting, prompting the Financial Supervisory Commission (FSC) to announce that the vote would be investigated. Lin Kuo Wen-yen (林郭文艷) was re-elected as chairwoman of the household-appliance maker’s nine-member board, but prior to the vote she announced that several shareholders would not have voting rights. They were being denied a vote because they had contravened the Business Mergers and Acquisitions Act (企業併購法), and the Act Governing Relations Between the People of the Taiwan Area and