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Largan Precision net profit up 24% in the second quarter

TAIPEI--Largan Precision Co. (大立光) said Thursday that its net profit for the second quarter of this year rose about 24 percent from a quarter earlier, with market analysts attributing the growth to an increase in high-end product shipments.

During the April-June period, Largan posted NT$3.72 billion (US$124 million) in net profit, up from about NT$3 billion recorded a quarter earlier. Its second-quarter earnings per share (EPS) stood at NT$27.75, compared with the first quarter's NT$22.36.

On the back of an improvement in its product portfolio, Largan's gross margin for the second quarter rose to 58.19 percent from 55.61 percent recorded in the previous quarter.

According to Largan, 5-megapixel lenses accounted for 20-30 percent of the total second-quarter sales, while 8-megapixel devices made up 30-40 percent and 10-megapixel models represented 10-20 percent.

However, Largan suffered about NT$300 million in foreign exchange losses, which compromised its net profit in the second quarter to some extent.

In the past quarter, in which Largan's consolidated sales rose month by month, the company posted NT$10.02 billion in consolidated sales, up 46.06 percent quarter-on-quarter. The second-quarter sales were an all-time quarterly high for the company.

In terms of the current quarter, Adam Lin, Largan's chief executive officer, said that judging from the orders his company has received, sales for August are likely to rise from July, as its clients will unveil high-end smartphone models in that quarter.

Lin's comments echoed a market expectation that Largan will get a boost in the third quarter from an increase in orders placed by Apple Inc., which is expected to launch the next generation of the iPhone, likely in September.

Largan is one of the Apple concept stocks, as the U.S. consumer electronics giant accounts for about 40 percent of the Taiwanese firm's total sales.

In the first half of this year, Largan posted NT$6.72 billon in net profit, up 73 percent from a year earlier, with EPS of NT$50.11, compared with NT$28.96 recorded over the same period of last year.

Shares of Largan fell 3.98 percent to close at NT$2,530.00 on the Taiwan Stock Exchange Thursday as investor sentiment turned cautious ahead of the company's investor conference scheduled to take place after the market closed that day.

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