Handset camera lens manufacturer Largan Precision Co (大立光) yesterday posted a 22.34 percent year-on-year surge in revenue for last month, but analysts warned that sales could slow this quarter given a slew of factors, including the 2019 novel coronavirus outbreak in China.
Consolidated revenue was NT$4.11 billion (US$136.31 million) last month, Largan said.
On a monthly basis, the figure declined 19.39 percent as the Lunar New Year holiday shortened the number of working days last month, it said.
A shipment breakdown provided by the company showed that 10-megapixel lenses accounted for 50 to 60 percent of overall shipments, while 20-megapixel and higher-resolution lenses made up another 20 to 30 percent.
Lenses with a resolution of 8 megapixels contributed between 10 and 20 percent of Largan’s shipments last month.
TF International Securities Group Co (天風國際證券) analyst Kuo Ming-chi (郭明錤) yesterday forecast a 40 to 50 percent sequential decline in revenue this quarter, citing factors such as CMOS camera module suppliers only partially resuming production next week in China due to the outbreak, slipping sales of Android-based smartphones in China and a potential price war.
Largan and industry peers — including Sunny Optical Technology Group Co (舜宇光學) and Genius Electronic Optical Co (玉晶光) — are likely to turn in lackluster numbers this quarter, Kuo said in a report.
However, Good Security Investment Consultant Co (顧德投顧) analyst Huang Han-cheng (黃漢成) was more optimistic.
“A majority of Largan’s production is in Taiwan, where all plants are running at full production over the past few months... Any production delays at the company’s China plants should have little impact on overall operations,” Huang told the Taipei Times by telephone.
Largan is to launch a new plant in the Taichung Industrial Park (台中工業區) this year, with construction expected to be completed by the end of 2023.
Huang predicted a 40 percent sequential decline in Largan’s revenue this quarter if the virus continues to spread through next month.
“Nonetheless, Huawei Technologies Co (華為) has already resumed its production and increased its orders to Largan,” he said, dismissing concerns over declining smartphone sales in China.
While Apple Inc and Samsung Electronics Co have shut down a number of stores across China, customers are still able to purchase handsets online, Huang said.
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