Largan’s sales decrease 11.47% year-over-year
By Chen Cheng-hui / Staff reporter
Handset camera lens manufacturer Largan Precision Co (大立光) reported a 11.47 percent year-on-year decline in revenue for the third quarter yesterday, despite revenue last month hitting its highest level since October last year.
Third-quarter revenue was NT$15.65 billion (US$492.32 million), compared with NT$17.68 billion a year earlier, the company said in a statement.
The figure was below the NT$18.58 billion consensus estimate from a Yahoo Finance poll of 13 analysts.
The logo of Largan Precision Co outside the company’s headquarters in Taichung is pictured on June 6, 2020.
Photo: David Chang, EPA-EFE
Third-quarter revenue increased 14.53 percent from NT$13.66 billion in the second quarter, as the quarter is usually the peak season for the handset industry. Apple Inc in the quarter launched the iPhone 18 series with variable aperture lenses for which Largan enjoys an exclusive supply share, Yuanta Securities Investment Consulting Co (元大投顧) said.
The iPhone 18 lineup saw strong sales after its launch last month, boosting Largan’s sales to NT$5.78 billion in the month, the highest since October last year, when it posted sales of NT$6.26 billion, the company’s data showed.
Besides Apple, Taichung-based Largan supplies high-end handset camera lenses to Android phone vendors, such as Samsung Electronics Co, Xiaomi Corp (小米) and Huawei Technologies Co (華為).
In the first nine months of the year, Largan’s cumulative revenue was NT$44.86 billion, up 2.12 percent from NT$43.93 billion a year earlier, the company’s data showed.
Largan is to release its third-quarter earnings results at an investors’ conference on Thursday and give sales guidance for the fourth quarter.
During the conference, investors are expected to hear from the company about prospects of new handset sales from major vendors, its progress in pilot production of fiber arrays for copackaged optics, and land purchases for production expansion.
As Largan is pushing into the copackaged optics market, the company has spent several months in research and development on optical communication applications, leveraging its expertise in precision alignment.
The company has sent fiber array samples to customers for validation and plans to establish pilot lines using semi-automated production and invite potential clients for factory visits, with full automation to be introduced upon mass production next year, Yuanta said.
This year, Largan has spent more than NT$8 billion on land and factory buildings across Taichung for production expansion, the company’s regulatory filings showed.
KioskNews shows a cleaned-up reading view extracted from the publisher’s page — the original always lives on their site, not ours.