Largan Precision Co (大立光), the nation’s leading maker of handset lenses, is expected to post stronger revenue and profit growth in the second half of this year, bolstered by the trend toward high-pixel resolution lenses in China, SinoPac Securities Co (永豐金證券) said yesterday.
The company — which counts Apple, HTC (宏達電), Motorola and Nokia as customers — should also benefit from new shipments to South Korean clients such as Samsung and LG Electronics, further securing its leading position in the global lens market, the brokerage said in a note.
“With superior technology in high-end camera lenses, Largan is expected to further expand its market share in China this year,” SinoPac said.
In the first quarter of the year, 75.28 million smartphones were sold in China, up 141.5 percent from the same quarter last year and 32.2 percent from the fourth quarter of last year, the Beijing-based research firm Analysis International reported on Monday.
Another report released by US researcher Gartner Inc earlier this month also showed that smartphone sales in China increased 108 percent year-on-year to 70 million units in the first quarter, with China accounting for 33 percent of global smartphone sales, up from 22 percent in the same period last year.
“Overall, Largan will enjoy a compound effect from the fast growth in China’s smartphone demand and the industry’s aggressive pixel migration,” SinoPac said.
The brokerage raised its price target for Largan to NT$1,200 from NT$870 after revising its forecast for the company’s earnings per share (EPS) this year to NT$57.20 from NT$54.30.
Largan’s net profit is expected to reach NT$7.67 billion this year, up 37.5 percent from last year, and its revenue could rise 28.3 percent year-on-year to NT$25.74 billion, SinoPac said.
Another brokerage, Capital Securities Corp (群益證券), said Largan’s sales this quarter could beat forecasts because of robust shipments to non-Apple clients. It added that Largan could sustain its growth momentum in the second half following launches of new iPhones and other products.
Apple is expected to release its next iteration of the iPhone as well as a lower-priced iPhone in th third quarter, Capital said in a note on Monday.
“In addition, demand for high-end handset lenses with 10-megapixel resolution and a large aperture is expected to accelerate this year, implying higher entry barriers for Largan’s competitors,” Capital said.
The brokerage revised up its second-quarter revenue estimate for Largan to NT$5.89 billion from NT$5.25 billion and adjusted up its net profit forecast to NT$1.41 billion, or EPS of NT$10.51.
For the full year, Largan’s revenue is expected to increase 36.7 percent to NT$27.43 billion and its net profit is forecast to rise 46.6 percent to NT$8.17 billion, or EPS of NT$60.95, said the brokerage, which maintained its “buy” rating on the stock with a price target of NT$1,050.
Largan shares rose 2.69 percent to close at NT$955 yesterday, pulling back from an intraday high of NT$974.
PROTECTIONISM: China hopes to help domestic chipmakers gain more market share while preparing local tech companies for the possibility of more US sanctions Beijing is stepping up pressure on Chinese companies to buy locally produced artificial intelligence (AI) chips instead of Nvidia Corp products, part of the nation’s effort to expand its semiconductor industry and counter US sanctions. Chinese regulators have been discouraging companies from purchasing Nvidia’s H20 chips, which are used to develop and run AI models, sources familiar with the matter said. The policy has taken the form of guidance rather than an outright ban, as Beijing wants to avoid handicapping its own AI start-ups and escalating tensions with the US, said the sources, who asked not to be identified because the
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
Her white-gloved, waistcoated uniform impeccable, 22-year-old Hazuki Okuno boards a bullet train replica to rehearse the strict protocols behind the smooth operation of a Japanese institution turning 60 Tuesday. High-speed Shinkansen trains began running between Tokyo and Osaka on Oct. 1, 1964, heralding a new era for rail travel as Japan grew into an economic superpower after World War II. The service remains integral to the nation’s economy and way of life — so keeping it dazzlingly clean, punctual and accident-free is a serious job. At a 10-story, state-of-the-art staff training center, Okuno shouted from the window and signaled to imaginary colleagues, keeping
RSS