Smartphone camera lens supplier Largan Precision Co (大立光) yesterday remained tight-lipped about the company’s capacity expansion plans, only saying that it is pursuing new technology.
The company is developing new specifications and applications for smartphone camera lenses, which would be produced at a new plant, Largan chief executive officer Adam Lin (林恩平) said during an investors’ teleconference.
The new lenses would be all plastic and be made with a revamped manufacturing process, Lin said, adding that the company’s expansion plans would begin to take shape by 2020.
However, Lin declined to reveal further details and sources of demand that would fill the company’s growing capacity, citing confidentiality agreements with its customers.
Last month, Lin said the company was seeking to buy a 30,000 to 40,000 ping (99,174m2 to 132,232m2) plot of land to expand its production capacity.
“While the central and local governments have pledged their assistance in resolving land scarcity, our search for land still faces numerous challenges,” Lin said, adding that the process would take some time.
For this quarter, the company expects sales to see sequential gains over this month and next month, as the industry enters the high season and clients launch new models, Lin said, adding that sales this quarter would likely outperform those of the second quarter.
Two of the company’s newly developed leading-edge offerings — a lens with seven pieces of plastics and a telephoto lens — are to commence shipments next year and contribute to revenue, he said.
The prevailing trends in smartphone photography, namely the triple camera design and telephoto lens, are not mutually exclusive, and the company is prepared to meet customers’ varying design specifications, he said.
Asked about the latest round of tariffs imposed by the US on China, Lin said that glass lenses from its plants in China account for only a small portion of revenue.
Asked about Largan’s development of applications other than handset camera lenses, Lin said that glass lenses show promise in automotive applications, but the company’s progress in this segment remains limited.
While automotive applications have a lower technological barrier, obtaining certification from automakers is difficult, he added.
The company also released financial results for last quarter. Net income rose 36.87 percent quarterly and 16.69 percent annually to NT$5.5 billion, with earnings per share of NT$41.01.
Revenue during the quarter rose 38.5 percent quarterly and 9 percent annually to NT$12.3 billion, while gross margins gained 5.28 percentage points to 68.61 percent, the company said.
Net income in the first half of the year edged down 0.81 percent annually to NT$9.52 billion, or NT$70.97 per share, while revenue fell 4 percent annually to NT$21.17 billion, the company said.
Shares of Largan closed up 2.71 percent at NT$4,930 in Taipei trading ahead of the teleconference.
The stock, which has risen 19.4 percent this year, has further upside, Yuanta Securities Investment Consulting Co (元大投顧) said, citing good prospects for OLED-equipped iPhone demand in the second half of this year and faster-than-expected adoption of triple camera design by the industry.
“In addition, Largan’s comments on specs migration and capacity expansion will be read as positive by the market,” Yuanta analyst Jeff Pu (蒲得宇) said in a note yesterday.
DEVELOPING TALENT: The electronics contractor is looking to recruit people to work in core tech fields and emerging industries like electric cars and robotics Hon Hai Precision Industry Co (鴻海精密), the world’s largest contract electronics maker, has launched a recruitment drive, offering a monthly salary of no less than NT$45,000 (US$1,485) to university graduates. For those with a master’s degree, the starting pay would be NT$52,000 per month at the minimum, while doctorate degree holders would receive at least NT$60,000 a month, Hon Hai said a statement issued early this week. The latest recruitment drive is aimed at attracting talent in core technology fields — artificial intelligence, semiconductors and next-generation mobile communications — and emerging industries — electric vehicles, digital healthcare and robotics, the
NEW CONSIDERATIONS: An airline manager said the idea is tempting, as demand for air cargo is strong, but issues such as training loaders would need to be addressed Taiwanese airlines might repurpose passenger jets to carry cargo in their cabins to offset lost revenue amid the COVID-19 pandemic. Airlines are considering applying to the Civil Aeronautics Administration (CAA) for permission to transport cargo in passenger cabins after StarLux Airlines Co (星宇航空) last month became the first among the nation’s airlines to offer cargo-only flights using the normal cargo holds of its three Airbus SE A321neo passenger jets. “We are considering whether to increase our capacity by putting cargo on passenger seats,” Starlux spokesman Nieh Kuo-wei (聶國維) told the Taipei Times by telephone. “The advantage is that we can improve revenue,
GLOBAL CUTS: CEO Warren East said the firm’s focus was on strengthening financial resilience, so it would likely reduce salary costs by at least 10% this year Rolls-Royce Holdings PLC is scrapping its targets and final dividend to shore up its finances as the British aero-engine maker’s customers around the world ground planes due to the COVID-19 pandemic. Rolls-Royce, one of Britain’s most historic industrial names, which before the pandemic struck was trying to emerge from a multiyear turnaround plan, has suspended its dividend for the first time since 1987. The company’s engines power Airbus SE and Boeing Co’s widebody jets, but more than 60 percent of that fleet is now grounded, according to aviation data provider Cirium. Rolls-Royce is paid by airlines based on how many hours they fly. Over
PAINFUL CONTRACTION: Passenger loads in February on flights between Taiwan and China, Hong Kong and Macau fell by more than 90 percent compared with December Even with more than NT$450 billion (US$14.85 billion) in financial aid from the Executive Yuan’s expanded relief package, local tourism-related businesses are unlikely to rebound from the COVID-19 pandemic any time soon, a central bank report released last month said. The NT$1.05 trillion relief package includes NT$472 billion in financial assistance for tourism and transportation sectors, such as airlines, hotels, travel agencies, taxis and tour buses. However, a March 20 central bank report said that the effects of the COVID-19 pandemic on global and domestic economies are far greater than that of the 2002-2003 SARS epidemic, despite any benefits from delayed purchases