Largan dividend becomes highest payout on market
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.
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.