Largan Precision Co (大立光) yesterday reported a 1.82 percent increase in consolidated revenue for last quarter from a year earlier to NT$18.21 billion (US$553.04 million), the fourth-highest for a single quarter in the company’s history, the nation’s largest handset camera lens maker said in a statement.
However, last quarter’s number declined 3.91 percent from the previous quarter’s record level, when revenue stood at NT$18.95 billion, as the industry entered its slow season, analysts said, adding that the decline was also the result of a reduced order by a US smartphone client.
Largan chief executive officer Adam Lin (林恩平) had already sounded a cautious note at an online investors’ conference on Oct. 17 last year, saying business performance in the December quarter would be weak due to order cuts by customers and the entry of new competitors.
Photo: David Chang, EPA-EFE
Still, Largan reported its second-highest revenue of NT$59.46 billion for the whole of last year, an annual growth of 21.73 percent and evidence that it remains a technology leader dominating the high-end smartphone market. The company achieved record revenue of NT$60.75 billion in 2019.
Largan’s core competency lies in the production of plastic lenses, which are widely used in smartphone cameras. The company has also developed hybrid lenses, which are plastic and glass lenses together.
The company said that revenue for this month would slide from last month’s NT$5.64 billion due to seasonal factors and disruption from the Lunar New Year, which falls on Jan. 29 this year.
Largan is to hold an investors’ conference on Thursday to release its earnings results for last quarter and give sales guidance for this quarter. The market would also focus on some key points, including whether gross margin and factory utilization rate could improve further, and the company’s plans for artificial intelligence solutions and advanced optical applications for high-end smartphones.
As various handset vendors continue to develop foldable phones, and Apple Inc is speculated to launch what might be its slimmest iPhone ever this year, which would greatly reduce the thickness of lenses and create barriers to entry in the industry — all pose positive to Largan’s profit outlook, analysts said.
The firm posted NT$17.24 billion in net profit during the first three quarters of last year, up 31.96 percent from a year earlier, with earnings per share of NT$129.16.
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