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Altek growth expected on heels of HTC M8 camera
Taiwan News, Staff Writer
2014-03-26 03:16 PM
Institutional investors have confirmed that the depth recording dual lens unveiled during the debut of HTC’s (2498) M8 high-end flagship phone was built by Altek Corporation (3059). In recent days, Altek stock has clearly benefited from HTC’s high-end aluminum M8 smartphone and trended higher. Future profit growth should not be underestimated due to the product’s gross profit margin of 50%.

According to specifications, the M8 ‘s Duo Camera can change focus after the fact, create a shallow depth of field comparable to a SLR(single-lens reflex camera), and includes a 3D filming function.

Foreign securities firms recently revealed that an interview with Altek confirmed the company built the dual lens utilized on the flagship M8. The advantage of the dual lens is enhancement of photo quality while increasing brand differentiation and it is also a future trend.

Altek states that it is officially transforming from a digital camera assembly plant into a mobile phone camera solutions company. Solutions include chips, software, IP, and modules in concert to promote customization and the patronage of mobile phone clients. In addition to Japanese mobile phone companies, clients also include Huawei, Lenovo, Xiaomi, and HTC.

Institutional investors forecast, with the release of HTC’s flagship M8, Altek’s duel lens will begin mass production in March and Huawei and Lenovo orders will begin manufacturing and shipping in Q2, spurring explosive growth in Altek’s Q2 operation.

Altek recognized a settlement with Kodak in Q4 last year causing net income to freefall NT$363 million with a loss of NT$0.96 per share and erasing the profits of the prior 3 quarters. Net losses for the year totaled NT$332 million or a loss of NT$0.88 per share and the Board of Directors resolved not to issue a dividend.

After coming under the management of the Yulon Group, Altek’s business strategy migrated towards the smartphone, automotive electronics, and medical supply sectors. The proportion of digital camera business has gradually fallen to 30%. This year, Altek will officially transform from a digital camera assembly plant into a mobile phone camera solutions company. The addition of medical grade optical technology has allowed automotive cameras to garner the patronage of U.S. manufacturers. When shipments begin next year, Altek will join a select group of lens, optical, and imaging companies spanning the niche mobile phone, automotive, and medical sectors.

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