Largan Precision Co (大立光) shares climbed 4.61 percent, or NT$240, to close at a record high of NT$5,450 in Taipei trading yesterday, reflecting the market’s warm response to the world’s leading smartphone camera lens supplier’s latest plan to expand production capacity.
Largan, which supplies camera lenses for Apple Inc’s iPhones, said in a filing on Monday night to the Taipei Stock Exchange that it spent NT$1.03 billion (US$33.91 million) to purchase a plot of land and the building on it near its headquarters in the Taichung Industrial Park.
The filing prompted investors to buy Largan shares as soon as the market opened yesterday, with the share price closing at a record high amid optimism about the company’s outlook, market analysts said.
More than 690,000 shares were traded during the session, with another 4,000 shares of buy orders pending execution today, the exchange’s data showed.
According to Largan’s filing, the plot of land is 1.38 hectares.
Largan said the property would be used to expand production of camera lenses used in smartphones, based on its estimate on the market demand for the foreseeable future. It has not yet determined when the new plant will start operations.
If more land suitable for building plants becomes available, especially near its headquarters, the company said it would seek to buy it for future capacity expansion
The announcement of its latest investment came as Largan’s new 5.4 hectare plant next to its headquarters readies to start trial production this quarter and mass production the following quarter.
Largan bought the 5.4 hectare plot in 2014 and has invested more than NT$20 billion to build the facility.
The plan to expand production capacity echoed remarks made by Largan chief executive officer Adam Lin (林恩平) last month during the company’s annual general meeting, when he said that demand for camera lenses remains solid at a time when international smartphone brands are increasingly adopting dual lenses or even multiple lenses.
Largan plans to maintain a large production capacity and to produce camera lenses with high yield to help the company maintain its competitiveness and its leading position in the industry, he said.
Additional reporting by CNA
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