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Largan shares up on strong earnings

Largan shares up on strong earnings

Taipei, Jan. 16 (CNA) Shares of Largan Precision Co. (???) moved higher Friday morning after the smartphone camera lens supplier on Thursday reported a record high net profit for 2014, dealers said. However, the gains appeared limited as the stock moved closer to the nearest technical resistance point of NT$2,500.00 amid deepening worry over the slow pace of the global economic recovery, dealers said. As of 11:51 a.m., shares of Largan had risen 1.27 percent to NT$2,390.00 (US$76.63), off an early high of NT$2,450.00, with 1.4 million shares changing hands. The weighted index on the Taiwan Stock Exchange was down 0.15 percent at 9,151.58 points. Largan shares, the most expensive on the local market, attracted buying soon after the bourse opened and they hit an early high as investors started buying into the stock, based on its 2014 results. At an investor conference Thursday, Largan reported NT$7.42 billion in net profit for the fourth quarter of last year, up 40.45 percent from the previous quarter. Its fourth quarter's earnings per share stood at NT$55.34, compared with NT$39.40 in the third quarter and well above an earlier market estimate of NT$45-NT$48. Market analysts said the company's strong fourth quarter's earnings resulted largely from orders placed by Apple Inc. (??), which released its iPhone 6 and iPhone 6 Plus in September. In addition to the orders from Apple, Largan benefited from large foreign exchange gains of about NT$966 million amid a steep drop of the Taiwan dollar against the U.S. dollar. Despite the significant increase in net profit in the fourth quarter, Largan said, its gross margin in the October-December period fell to 50.61 percent from 52.48 percent in the third quarter. It said voice coil motors, which have a relatively low profit margin, weighed more in the company's product portfolio. With the strong showing in the fourth quarter, Largan's net profit for 2014 rose by an annual 102 percent to NT$19.43 billion, the highest in the company's history. Its 2014 EPS rose to NT$144.85 from NT$71.64 in 2013. The company's strong earnings in 2014 prompted several foreign institutional investors to issue target prices of up to NT$3,300 on Largan shares. (By Han Ting-ting and Frances Huang)


Updated : 2021-09-28 08:50 GMT+08:00