Alexa
  • Directory of Taiwan

Genius shares up on profit hopes, new iPhone sale

Genius shares up on profit hopes, new iPhone sale

Taipei, Sept. 23 (CNA) Shares of Genius Electronic Optical Co. moved higher Tuesday morning on hopes that the smartphone camera lens supplier will turn a profit on orders for components for the new iPhones from Apple Inc., dealers said. Those hopes were raised after Apple reported record high sales for the two new iPhone models -- the iPhone 6 and the iPhone 6 Plus -- in the first three days after the new devices were put on sale around the world over the weekend, they said. Though Genius shares have shot up due to the iPhone 6 and iPhone 6 Plus sales report, other domestic "Apple concept stocks," such as smartphone camera lens maker Largan Precision Co., and assembler Hon Hai Precision Industry Co., have not received much of a boost, they said. As of 11:23 a.m., shares of Genius had gained 3.90 percent to NT$120.00 (US$3.97), with 10.94 million shares changing hands, while shares of Largan had fallen 0.21 percent to NT$2,335.00 and Hon Hai was unchanged at NT$101.00. The weighted index on the Taiwan Stock Exchange was down 0.13 percent at 9,122.33. "After Apple unveiled the iPhone 6 and iPhone 6 Plus, which stuck to 8-megapixel lenses instead of the more advanced 13-megapixel ones as the market had expected, many investors expected that Genius, a second tier supplier, would receive more orders from Apple," MasterLink Securities analyst Tom Tang said. In August, Genius posted NT$1.04 billion in consolidated sales, the highest in 11 months. The August sales were up 10.2 percent from a month earlier and also up 10.6 percent from a year earlier. "Judging from the August sales data, many investors feel that Genius is riding the wave of an uptrend in orders placed by Apple," Tang said. "The stock had previously been hammered by its losses in the first half of this year. Now such positive leads have prompted many bargain hunters to return." Genius shares have risen about 36 percent in past two weeks since Apple launched the iPhone 6 and iPhone 6 Plus on Sept. 9. Tang said the positive Apple leads gained further momentum after Apple reported overnight that it sold more than 10 million units of the iPhone 6 and iPhone 6 Plus in the first three days after the new product went on sale in certain markets. A total of 9 million units of the iPhone 5S and 5C were sold in their first three days after they were put on the market last year. "So many investors are hoping that on the back of Apple's orders, Genius will turn a profit. The recent strong showing in its share price reflects that optimism," he said. In the first half of the year, Genius incurred NT$6.32 in loss per share, compared with NT$2.74 in loss per share recorded over the same period of last year. In 2013, Genius's had a loss per share of NT$3.74, compared with NT$9.04 in earnings per share registered in 2012. "The losses resulted from a relatively low yield. I remain cautious about Genius's bottom line as I am not sure whether the yield rate has been improving to a level at which the company can be profitable," Tang said. (By Frances Huang)


Updated : 2021-10-25 22:46 GMT+08:00