Mon, Aug 06, 2018 - Page 16 News List

Largan reports revenue growth

PEAK SEASON PREPARATIONS:Last month’s figures were 18.2 percent higher than the previous month and the highest since November last year, company data showed

By Chen Cheng-hui  /  Staff reporter

The Largan Precision Co offices are pictured in Taichung on July 17.

Photo: Chen Mei-ying, Taipei Times

Largan Precision Co (大立光) yesterday reported double-digit percentage growth in revenue for last month, reaching its highest level in eight months, a sign that the smartphone camera lens supplier is making progress ramping up production as the industry enters its peak season and customers launch new models.

Consolidated revenue for last month reached NT$5.33 billion (US$173.6 million) last month, up 18.2 percent from the previous month and 19.57 percent from a year earlier, figures on Largan’s Web site showed.

Last month’s figures were the highest since November last year, when the company posted NT$5.61 billion in revenue, the company’s data showed.

High-margin lenses for cameras of 20 or more megapixels accounted for 10 to 20 percent of its total shipments last month, lenses for products of 10 megapixels and above contributed 60 to 70 percent, lenses for 8-megapixel products made up 10 to 20 percent and other lenses for products with lower resolutions contributed 10 to 20 percent, Largan’s shipment breakdown showed.

As a leading maker of optical lens modules, Largan also produces real-image viewfinders and other optoelectronic parts.

With May and June sales returning to positive annual growth, last month’s numbers further confirmed that the Taichung-based company remains a solid player in Apple Inc’s supply chain, while its effort to re-engage with Android smartphone vendors has been fruitful.

Even so, the company’s cumulative revenue for the first seven months of the year was still 0.28 percent lower than the same period last year, totaling NT$26.5 billion.

Largan began shipping lenses for dual-camera iPhone models in June and the momentum should continue into this quarter, supported by the company’s July 12 revenue guidance of sequential gains for this month and next month, analysts said.

In research notes released on July 13, Maybank Kim Eng Securities Ltd said the key drivers to Largan’s revenue growth include rising prices for iPhone lenses and market share gains in Android phones, while Credit Suisse Group AG said the company’s revenue for this quarter would grow 30 percent from last quarter’s NT$12.3 billion.

Thanks to a better revenue scale, a more favorable product mix and a continued improvement in production yield rates, Largan shares have risen 27.61 percent so far this year. The stock closed at NT$5,130 on Friday in Taipei trading, Taiwan Stock Exchange data showed.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top