Seek­ing pro­tec­tion

Lar­gan div­i­dend be­comes high­est pay­out on mar­ket

The China Post - - TAIWAN BUSINESS -

Share­hold­ers of smart­phone cam­era lens sup­plier Lar­gan Pre­ci­sion Co. ( ) gave the green light Wed­nes­day to the com­pany’s pro­posal to is­sue a NT$51 (US$1.64) cash div­i­dend for 2014.

The cash div­i­dend pay­out will be the high­est in the lo­cal eq­uity mar­ket’s his­tory since Lar­gan’s 2014 net profit more than dou­bled from a year ear­lier.

How­ever, as Lar­gan re­mained the most ex­pen­sive stock in the lo­cal mar­ket, the high cash div­i­dend pay­out only trans­lated into a 1.56 per­cent div­i­dend yield based on its closing level of NT$3,270.00 on Wed­nes­day.

In an an­nual gen­eral meet­ing, Lar­gan’s share­hold­ers ap­proved the 2014 div­i­dend pro­posal, which was much higher than the NT$28.50 is­sued for 2013.

On the back of an in­crease in or­ders from Ap­ple Inc., which un­veiled the popular iPhone 6 and iPhone 6 Plus in Septem­ber, Lar­gan’s net profit for 2014 rose 102 per­cent year-on-year to NT$19.44 bil­lion.

Its earn­ings per share stood at NT$144.91, also a record high among the listed com­pa­nies in the lo­cal mar­ket. The 2014 EPS was much higher than the NT$71.64 recorded a year ear­lier.

In the share­holder meet­ing, Lar­gan Chair­man Lin En-chou ( ) said that the com­pany will con­tinue to de­vote it­self to re­search and devel­op­ment in a bid to fur­ther im­prove its pro­duc­tion tech­nol­ogy and rake in hand­some prof­its in the fu­ture.

In 2014, Lar­gan spent NT$2.103 bil­lion in R&D, up 63 per­cent from a year ear­lier, and the funds were largely used for de­vel­op­ing cam­era lenses and seek­ing al­ter­na­tive sales sources to broaden its op­to­elec­tron­ics prod­uct mix.

Sev­eral re­search in­sti­tu­tions have an­tic­i­pated that de­mand for smartphones will con­tinue to grow this year de­spite a slower pace, and the high-end cam­era lenses Lar­gan spe­cial­izes in will play a more im­por­tant role in smart­phone com­po­nent lines.

Chief Ex­ec­u­tive Of­fi­cer Adam Lin ( ) said that Lar­gan has en­tered the smart­phone sup­ply chain in In­dia, which is grow­ing at a rapid pace, by mak­ing cam­era lenses for In­dian brands. But, Lin said that Lar­gan has no im­me­di­ate plan to set up any pro­duc­tion base in the In­dian mar­ket.

In May, Lar­gan posted NT$4.42 bil­lion in con­sol­i­dated sales, the high­est so far this year. The May fig­ure was up 3 per­cent from a month ear­lier and up a dra­matic 30 per­cent from a year ear­lier.

CNA

Lo­cals of Dacheng Town­ship, Changhua County rally in front of the En­vi­ron­men­tal Pro­tec­tion Ad­min­is­tra­tion (EPA) in Taipei, yes­ter­day. The EPA ex­am­ined the sec­ond stage en­vi­ron­men­tal im­pact as­sess­ment (EIA) re­ports yes­ter­day for the Changhua Dacheng Industrial Park ( ). Pro­test­ers de­manded that the Min­istry of Eco­nomic Af­fairs cancel the project as Changhua Mag­is­trate Wei Ming-ku ( ) had al­ready pub­licly spo­ken against the park’s con­struc­tion last month.

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