Smartphone camera lens maker Largan May sales hit high of NT$4.42 bil.
Sales posted in May by Largan Precision Co., one of Taiwan’s leading smartphone camera lens suppliers, reached a high for so far this year, with market analysts attributing the growth to an increase in orders from Androidbased device vendors.
In May, Largan recorded NT$4.42 billion (US$143 million) in consolidated sales, up 3 percent from a month earlier and up a much higher 30 percent from a year earlier.
Analysts said Largan, a major Taiwanese supplier to Apple Inc., suffered a decline in orders from the U.S. consumer electronics giant for the iPhone 6 and iPhone 6 Plus, the latest iPhone models, but an increase in orders from the non-Apple camp offset the impact.
They said the sales growth also reflected a trend in which more and more smartphone vendors adopted high- end equipment, including 10 megapixel camera lenses Largan specializes in making, allowing the company to take advantage of its technology lead over its peers.
In May, 10 mega-pixel camera lenses accounted for 20-30 percent of Largan’s total sales, 8 mega-pixel lenses made up 50-60 percent, 5 mega pixel lenses represented 10-20 percent, the company said.
As for the
first five months of this year, Largan posted NT$19.24 billion in consolidated sales, up 43 percent from a year earlier.
The company said that sales for June are expected to stay at a similar level to May’s. Analysts said that it is possible for Largan to surpass NT$10 billion in consolidated sales for the second quarter, compared with NT$10.57 billion recorded in the previous quarter and NT$9.98 billion registered in the second quarter of last year.
Largan has scheduled an annual general meeting for June 10. Analysts said that the market is eager to hear the company’s comments about demand for the second half of this year, in particular the needs for high-end camera lenses, 10 mega- pixel lenses and beyond.
The smartphone camera lens maker has proposed to the shareholder meeting a cash dividend of NT$51 for 2014, when the company posted a record high of NT$144.91 in earnings per share.
On Friday, shares of Largan staged a technical rebound, up 1.56 percent to close at NT$ 3,255.00 on the Taiwan Stock Exchange, from a 7.24 percent fall seen a session earlier. The stock outperformed the broader market, where the weighted index ended down 0.09 percent at 9,340.13 points in consolidation mode.