Shares of Largan Precision Co (大立光), a smartphone camera lens supplier to Apple Inc, yesterday hit a record closing high on expectations that its sales would pick up in the third quarter as the electronics sector enters its peak season.
The strong buying also reflected the lead Largan has over its rivals in dual lens development as a growing number of its clients adopt advanced dual camera lens in their smartphone models, dealers said.
Largan shares, the most expensive on the nation’s stock market, closed up NT$130, or 2.62 percent, to close at NT$5,090 on turnover of 627,000, outperforming the TAIEX, which closed down 0.07 percent at 10,289.91.
During yesterday’s trading session, Largan shares hit a new record high of NT$5,095. It was also the first time Largan returned to the NT$5,000 level since June 26, when it closed at NT$5,000.
Because of high expectations for Largan sales in the third quarter and the entire second half of the year, when Apple is due to unveil its next-generation iPhones, several foreign brokerages have reiterated their buy recommendations for the stock.
Last month, Largan posted consolidated sales of NT$3.86 billion (US$126 million), up 2.71 percent from a month earlier and 7.35 percent higher year-on-year.
Analysts attributed the rise to moves by its clients, including Apple, to build up their inventories in preparation for the launch of new models.
In the second quarter, Largan’s consolidated sales totaled NT$11.3 billion, up 4.54 percent from a quarter earlier and 12.57 percent higher year-on-year. Its revenue for the first half of the year rose 21 percent year-on-year to NT$22.12 billion.
Based on its second-quarter sales, analysts said Largan could post NT$38 in earnings per share for the quarter, compared with NT$36.41 in the first quarter, and its gross margin could rise 1 percentage point to a new high of 72 percent.
Largan is to hold an investor conference on Thursday, when the company is set to release its second-quarter results and give its guidance for the third quarter.
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