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Largan shares up despite monthly sales drop in February

Largan shares up despite monthly sales drop in February

Taipei, March 6 (CNA) Shares of Largan Precision Co. (???) moved higher Friday morning, recovering from their earlier losses, as investors left behind the negative leads from the company's more than 30 percent month-on-month sales decline in February, dealers said. The gains showed that the market is hoping the smartphone camera lens supplier's sales growth will pick up in March, after the slowdown in February due to a reduced number of working days because of the 6-day Lunar New Year holiday, dealers said. As of 11:02 a.m., shares of Largan had climbed 1.91 percent to NT$2,665.00 (US$84.60), off an early low of NT$2,600.00, with 525,000 shares changing hands. Largan remained the most expensive stock on the local market. The weighted index on the Taiwan Stock Exchange was up 0.20 percent at 9,614.40 points. "Although Largan shares opened lower in the wake of the steep month-on-month decline in its February sales, the stock rebounded well based on investors' confidence in the company's outlook," KGI Securities analyst Phil Chu said. "The month-on-month sales decline in February largely reflected the fact that there were fewer working days in the month due to the Chinese Lunar New holiday, he said. "The slower sales data also resulted from the slow season effects of the first quarter." In a statement Thursday, Largan reported NT$2.62 billion in consolidated sales for February, a 35 percent monthly drop but a 64 percent year-on-year increase. Largan posted NT$6.65 billion in consolidated sales for the first two months of the year, up 66 percent. The company said its usual sales growth pattern is likely to return in March, showing strong monthly and year-on-year increases. "Judging from the year-on-year sales growth, Largan is very likely to have a better 2015 than 2014 as demand for its high-end smartphone camera lens remains strong," Chu said. In addition to receiving orders from Apple Inc., Largan has secured orders from Chinese vendors who equip their smartphones with high-end camera lens to compete with international brands in the huge China market, he said. Largan has been dubbed one of the major "Apple concept stocks" in the local market. "Largan may continue to post a record high net profit in 2015," Chu said. "That's why many traders, in particular institutional investors, still favor this stock and are ignoring the weak February sales data." Largan is expected to report NT$160 to NT$170 in earnings per share for 2015, up from NT$144.85 in 2014. Meanwhile, Catcher Technology Co. (??), a metal casing supplier to Apple, posted NT$4.51 billion in consolidated sales for February, down 24.45 percent from a month earlier but up 63.1 percent year-on-year. Shares of Catcher rose 1.90 percent to NT$294.50 in Friday morning trade, despite the company's month-on-month sales decline. Chu said the market gains showed optimistic sentiment toward Catcher's sales growth for the whole of 2015. (By Han ting-ting and Frances Huang)


Updated : 2021-09-20 06:29 GMT+08:00