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Largan shares hit record high on foreign institutional buying

Largan shares hit record high on foreign institutional buying

Taipei, May 19 (CNA) Shares of Largan Precision Co. (???) rose to a record high Tuesday after foreign brokerages raised their target prices on the stock based on the company's first-quarter profits, dealers said. Largan's sales are also likely to show quarterly growth for the March-June period, reflecting the company's increased production capacity, dealers said. Amid such optimism, foreign institutional investors seemed to stay on the buy side throughout the session, dealers said. Shares of the camera lens supplier rose 6.23 percent to close at NT$3,325.00 (US$109.00), its highest closing level ever. The weighted index on the Taiwan Stock ended up 1.15 percent, at 9,716.77. The stock opened higher on follow-through buying from the previous session, when it closed up 1.62 percent. The buying momentum continued, becoming more evident late in the trading session and pushing the stock to a record high at the close. Investors chased the stock, taking cues from the net buy of 184,515 of its shares by foreign institutional investors on Monday and the decision by foreign brokerages to raise their target prices on the stock, dealers said. BNP Paribas, JP Morgan Chase and Merrill Lynch have raised their target prices on Largan shares to NT$3,800, NT$3,600 and NT$3,500, respectively. In the first quarter, Largan, a supplier to Apple Inc., posted better-than-expected earnings per share of NT$32.86 as the Taiwanese firm benefited from strong demand for the iPhone 6 and iPhone 6 Plus, Apple's latest smartphone models. Largan was the only camera lens maker in the local stock market to report a first-quarter profit. Among its competitors, Genius Electronic Optical Co. (???) reported the steepest loss per share of NT$4.72. Market analysts said Largan is expected to post a 19 percent sequential sales increase for the second quarter, and its sequential sales growth is expected to expand to 22 percent in the third quarter on the back of its higher production capacity. They forecast that Largan's EPS for 2015 will be no less than NT$162, compared with NT$144.85 in 2014. The upbeat outlook toward Largan's bottom line is expected to continue to boost its share price, analysts said. (By Han Ting-ting and Frances Huang)


Updated : 2021-09-22 10:45 GMT+08:00