Largan Precision Co (大立光), a leading supplier of camera lens modules, on Saturday reported record revenue for last month and last quarter amid new smartphone product cycles.
Consolidated revenue reached NT$6.596 billion (US$213 million) last month, up 1.84 percent from August and 19.54 percent from a year earlier, the Taichung-based company said in a filing with the Taiwan Stock Exchange.
Last month’s revenue was up for the second consecutive month. As a result, revenue in the third quarter of this year totaled NT$18.48 billion, up 31.26 percent quarter-on-quarter and 13.15 percent higher than a year earlier, company data showed.
The numbers were in line with analysts’ projections.
Capital Investment Management Corp (群益投顧) said in a note ahead of the release of Largan’s sales results that it forecast the company’s third-quarter revenue would increase 32.61 percent to NT$18.67 billion from the previous quarter.
Largan benefited from the pull-in of components for Apple’s iPhone 11-series models that began in July, while Huawei Technology Co’s (華為) new Mate 30 smartphones, introduced in Munich, Germany, and Shanghai last month, also contributed pull-in momentum for high-resolution lenses in the third quarter, Capital Investment said.
Largan did not elaborate on its strong performance for last quarter nor did it provide a sales guidance for this quarter.
The company said it expects sales this month to be as strong as last month.
Largan’s fourth-quarter revenue is likely to decline by 18 percent sequentially to NT$15.29 billion as launches by international brands might have concentrated in the second half of the year, Capital Investment said in the note on Thursday.
“Largan’s revenue for the fourth quarter of 2019 and the first quarter of 2020 are forecast to slide for two consecutive quarters as shipments of iPhone components might have already peaked,” it said.
Smartphones face tepid global demand, with Gartner Inc on Sept. 26 predicting that worldwide shipments could fall by 3.2 percent this year, which would be the worst decline ever.
However, the trend of upgrades to cameras is likely to continue, which would boost Largan’s full-year revenue by 15.85 percent annually to NT$57.87 billion, Capital Investment said.
Largan’s revenue in the first nine months rose 13.01 percent to NT$42.388 billion from a year earlier, company data showed.
“The negative impact of the US-China trade war and low smartphone shipment volume would be limited on Largan thanks to its diversified client base and strong technological leadership,” KGI Securities Investment Advisory Co (凱基投顧) said in a recent note.
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