Alexa
  • Directory of Taiwan

Largan August sales up 1% month-on-month

Largan August sales up 1% month-on-month

Taipei, Sept. 5 (CNA) Largan Precision Co. (???), a Taiwan-based smartphone camera lens supplier to Apple Inc., said on Saturday that its sales for August rose about 1 percent from a month earlier, which met the company's earlier forecast. In a statement, Largan said that it posted NT$5.30 billion (US$162 million) in consolidated sales for August, up slightly from the NT$5.25 billion recorded in July. Last month, Largan told reporters that its August sales could stay little changed or rise only slightly from July, which hurt investors' sentiment and sent its share price lower as the market had previously expected that the company's sales growth momentum would pick up from the third quarter, when Apple will unveil the next generation iPhone. Still, the August figure marked the sixth consecutive month for Largan to report higher revenue from a month earlier, and the latest sales number was up 34 percent from a year earlier. As for the first eight months of this year, Largan's consolidated sales totaled NT$34.90 billion, up 43 percent from a year ago. In August, 10-mega pixel lenses accounted for 45-50 percent of Largn's total revenue and 8-mega pixel lenses made up 20-30 percent of the total, indicating that high-end lenses have played a more important role in the company's product portfolio, according to the company's sales data. Looking ahead, Largan said that its sales for September could stay flat from August, which could further undermine investors' faith in the company, whose share price currently is the highest in the local equity market. On Friday, shares of Largan were hit hard by concerns that Apple's new iPhone, which could be launched on Sept. 9, will underperform its predecessors after a Taipei-based KGI Securities issued a report which raised such fears. The stock fell 5.76 percent to close at NT$2,700.00 Friday, underperforming the broader market, where the weighted index ended 1.17 percent lower. In the report, KGI Securities analyst Kuo Ming-chi (???) said that the new iPhone is expected to use the Force Touch technology but if the upgrade is not attractive enough to consumers, sales of the next generation smartphone could remain the same or fall lower than those of its predecessors, the iPhone 6 and iPhone 6S. Kuo is known to have a good record in tracking Apple and its supply chain. Largan shares have been also affected by a move by two foreign brokerages to cut their target price on the stock amid lingering fears that Largan's sales momentum will slow down in the fourth quarter at a time when global smartphone demand growth has been moderating. An Asia-based brokerage, meanwhile, has trimmed a target price on Largan shares to NT$3,326 from NT$3,900, and a European brokerage has lowered its target price for the company to as low as NT$2,880 from NT$3,900. (By Han Ting-ting and Frances Huang)


Updated : 2021-09-27 19:28 GMT+08:00