Shares of Lar­gan soar on Septem­ber sales, op­ti­mism for month to come

The China Post - - LOCAL -

Shares of Lar­gan Pre­ci­sion Co. ( ) moved sharply higher Tues­day morn­ing af­ter the smart­phone cam­era lens sup­plier re­ported bet­ter-than-ex­pected sales for Septem­ber, deal­ers said.

The buy­ing also re­flected Lar­gan’s up­beat forecast that its sales for Oc­to­ber will con­tinue to grow, with an­a­lysts at­tribut­ing the po­ten­tial growth to an in­crease in or­ders placed by Ap­ple Inc. for its new iPhones, they said.

As of 12:22 p.m., shares of Lar­gan had added 8.27 per­cent to NT$2,685.00 ( US$32.11), with 1.82 shares chang­ing hands. The weighted in­dex on the Tai­wan Stock Ex­change was up 0.66 per­cent at 8,407.25.

Lar­gan shares at­tracted strong in­ter­est soon af­ter the Tai­wan’s stock ex­change opened, and mo­men­tum con­tin­ued as bar­gain hun­ters seized on the Septem­ber sales re­port as a rea­son to pick up the stock, which had suf­fered heavy losses amid re­cent spec­u­la­tion that Ap­ple had shifted or­ders from Lar­gan to its ri­vals, deal­ers said.

In a state­ment re­leased Mon­day, Lar­gan said it had NT$5.52 bil­lion in con­sol­i­dated sales in Septem­ber, up 4 per­cent from a month ear­lier and also up 19 per­cent from a year ear­lier.

Sev­enth Con­sec­u­tive Month

New High in Sales

It was the sev­enth con­sec­u­tive month in which Lar­gan re­ported a new high in monthly sales for 2015.

The 4 per­cent month-on-month sales growth beat an ear­lier com­pany pre­dic­tion that said Septem­ber rev­enue would be lit­tle changed from Au­gust.

The cau­tious forecast wor­ried in­vestors at a time when Ap­ple was launch­ing its new iPhones and sparked fears that the U.S. firm had shifted or­ders away from Lar­gan to other sup­pli­ers.

In Septem­ber, 10-mega pixel or more ad­vanced lenses ac­counted for 40-50 per­cent of its to­tal sales, lit­tle changed from a month ear­lier, while 8-mega pixel lenses made up 20-30 per­cent of the com­pany’s rev­enue.

The fig­ures in­di­cated that so­phis­ti­cated cam­era lenses with higher profit mar­gins weighed heav­ily in Lar­gan’s prod­uct port­fo­lio.

Lar­gan said that based on its cur­rent or­der back­log, Oc­to­ber sales may ex­ceed Septem­ber’s, prompt­ing in­vestors to pour more funds into the stock Tues­day morn­ing.

Lar­gan said it will re­port its com­plete third-quar­ter re­sults and its forecast for the fourth quar­ter at an in­vestor con­fer­ence sched­uled for mid-Oc­to­ber.

NT$16.09 Bil. in Con­sol­i­dated Sales in Q3

In the third quar­ter, Lar­gan posted NT$16.09 bil­lion in con­sol­i­dated sales, up 17 per­cent from a quar­ter ear­lier and also up 33 per­cent from a year ear­lier.

In the first nine months of this year, Lar­gan’s con­sol­i­dated sales rose 40 per­cent from a year ear­lier to NT$40.43 bil­lion.

Mar­ket sources said two fac­to­ries rented by Lar­gan are sched­uled to be­gin oper­a­tions in the fourth quar­ter in a bid to meet ris­ing de­mand from Ap­ple, whose 4.7-inch iPhone 6s and 5.5-inch iPhone 6s Plus have been on sale glob­ally since late Septem­ber.

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