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Largan Q2 net profit up more than 9%

Largan Q2 net profit up more than 9%

Taipei, July 16 (CNA) Largan Precision Co. (???), a Taiwan-based smartphone camera lens supplier to Apple Inc., on Thursday reported a quarterly growth of more than 9 percent in net profit for the period April to June, which market analysts attributed to a better product portfolio. At an investor conference held after the close of the local equity market, Largan said its second-quarter net profit rose 9.46 percent from the previous quarter to NT$4.82 billion (US$155 million). Its second quarter earnings per share stood at NT$35.96, compared with NT$32.86 in the previous quarter, the company said. It also reported a second-quarter gross margin of 57.71 percent, up from 56.71 percent in the first quarter. "The higher earnings and gross margin reflected an improvement in Largan's product mix in which high-end camera lens with a higher profit margin weighed more in the second quarter," equity analyst Eric Lai said. In the second quarter, 10 megapixel lenses accounted for 20-30 percent of Largan's total sales, 8 megapixel lens made up 40-50 percent, and 5 megapixel lens 10 percent. In the second quarter, Largan's sales rose by a quarterly 38 percent to NT$13.78 billion. In the first half of the year, Largan's net profit rose 37 percent from a year earlier to NT$9.23 billion, with its EPS at NT$68.82, up from NT$50.11 in the same period of last year. Largan CEO Adam Lin (???) told investors that global demand for high-end camera lenses remains strong and Largan's sales in July and August will be steady. In June, Largan posted NT$5.11 billion in sales, up 16 percent from May and beating the market estimate of flat growth. Largan will continue to expand production capacity to meet customer demand, Lin said, adding that two new plants are scheduled to become operational in the fourth quarter. "Apple is expected to launch its next generation iPhone in the third quarter so Largan no doubt will benefit from the new products in that quarter," Lai said. The market is projecting Largan's third quarter sales growth at no less than 20 percent from the second quarter. Before the investor conference, foreign brokerage Daiwa Securities set a target price of NT$4,080.00 on Largan shares. The stock closed up 3.53 percent at NT$3,520.00, outperforming the main board, where the weighted index ended down 0.13 percent Thursday. Largan remained the most expensive stock on the local market. (By Han Ting-ting and Frances Huang)


Updated : 2021-09-28 20:37 GMT+08:00