Largan Precision Co’s (大立光) revenue last month was at its lowest in seven months, the smartphone camera lens maker said on Saturday, posting the first decline after seven consecutive months of growth.
Consolidated revenue dropped 17.16 percent month-on-month to NT$3.73 billion (US$134 million), the lowest since July last year, when the company posted NT$3.8 billion in revenue, Largan data showed.
Last month’s figure was 18.93 percent lower than the NT$4.61 billion it posted a year earlier, data showed.
Photo: Chen Mei-ying, Taipei Times
The results reflect the firm’s weakening demand as the industry entered a low season in the first quarter of the year.
Major smartphone brands are reducing purchases of high-end lenses, as they are not optimistic about the premium smartphone market.
Coupled with tight supply for some components, the company had predicted that sales would likely drop monthly from December last year to this month.
Taichung-based Largan is a global leader in the design, production and assembly of high-end mobile phone lenses. The company counts Apple Inc, Samsung Electronics Co and several Chinese brands among its customers, with its main competitors being Genius Electronic Optical Co (玉晶光) and Sunny Optical Technology Group Co (舜宇光學).
High-margin lenses for cameras of 20 megapixels or more accounted for 10 to 20 percent of its shipments last month. Lenses for products of 10 megapixels or more comprised 50 to 60 percent of purchases, while lenses for 8-megapixel products made up 10 percent and lenses for products with lower resolutions contributed 20 to 30 percent, Largan data showed.
As a leading maker of optical lens modules, Largan also produces voice coil motors, contact lenses and sleep monitoring systems.
The company’s net profit last year fell 23.93 percent to NT$18.66 billion from NT$24.53 billion in 2020, and revenue declined 16.4 percent to NT$46.96 billion from NT$55.94 billion.
This quarter, Largan’s revenue is forecast to fall 16.9 percent quarter-on-quarter and drop 8.5 percent year-on-year to NT$10.85 billion, as brand customers upgrade camera lens specifications more slowly than expected, Taishin Securities Investment Advisory Co (台新投顧) said in a research note last month.
The note also said that intensifying competition in the smartphone industry is unfavorable for prices of the company’s high-end lenses.
Additionally, a poor outlook in the premium phone market might result in brand customers delaying planned upgrades to high-end eight-piece plastic camera lenses to the second half of this year, rather than in the second quarter as originally planned, adding pressure on Largan’s gross margin, Taishin said.
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