Largan revenue surged as big customers restock


BOUNCE:
High-margin lenses led the month-over-month revenue increase, although global smartphone shipments could fall by 1.31 billion units this year, analysts said.

  • By Chen Cheng-hui / Staff Reporter

Smartphone camera lens maker Largan Precision Co (大立光) posted a 0.63% increase in month-over-month revenue for the past month yesterday, reversing a 16-month decline. .73% the previous month, but still down 6.15% from the previous year.

Consolidated revenue increased to NT$3.15 billion ($107.2 million) last month from NT$3.13 billion in April, the company said in a statement, as major customers started to replenish their inventory ahead of the launch of new products in the third quarter.

The company reported revenue of NT$3.35 billion in May last year.

Photo: Chen Mei-ying, Taipei Times

High-margin lenses for cameras of 20 megapixels or more accounted for 10-20% of its shipments last month. Lenses for products with 10 megapixels or more accounted for 50-60% of purchases, while lenses for 8-megapixel products accounted for 10% and lenses for products with lower resolutions accounted for 30-40%, according to the data. by Largan.

Cumulative revenue in the first five months of this year fell 11.6 percent to NT$16.41 billion from NT$18.56 billion a year earlier, the company said.

The global smartphone market has shown signs of weakness this year as lockdowns in eastern Chinese cities and supply chain bottlenecks continue to weigh on the industry, while A weak macroeconomic environment also weighed on consumer demand for consumer electronics like handsets, industry watchers said.

International Data Corp (IDC) forecast last week that global smartphone shipments would fall 3.5% a year to 1.31 billion units this year, a downward revision from its previous forecast of a 1.6% year-on-year increase, while Yuanta Securities Investment Consulting Co (元大投顧) predicted global shipments would decline 2.3% to 1.295 billion units this year, from 1.326 billion units last year. last year.

On April 14, Largan CEO Adam Lin (林恩平) told investors that revenue for last month and April would be lower than March’s NT$3.76 billion due to seasonal factors and supply shortages. components.

Order momentum is expected to be stronger this month than last month as more Chinese cities ease restrictive COVID-19 prevention measures and businesses resume operations, Largan said.

Largan, whose clients include Apple Inc, Sony Corp, Samsung Electronics Inc and Huawei Technologies Co (華為), is due to hold its annual general meeting on Wednesday, with shareholders expected to approve the company’s financial report for the past year and re-elect administrators.

Lin is expected to shed some light on the company’s outlook for the second half of the year after the meeting.

As a leading manufacturer of optical lens modules, Largan also produces voice coil motors, contact lenses and sleep monitoring systems.

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