Taipei--Shares of Largan Precision Co. (???), a smartphone camera lens supplier to Apple Inc., hit a record closing high on Monday on expectations that its sales will pick up in the third quarter as the electronics sector hits its peak season.
The strong buying also reflected the lead Largan has over its rivals in dual lens development as a growing number of its clients adopt advanced dual camera lens devices in their smartphone models, dealers said.
Shares of Largan, the most expensive stock in Taiwan's market, closed up NT$130 (US$4.25), or 2.62 percent, to close at NT$5,090.00 on turnover of 627,000 shares, outperforming the broader market, which ended down 0.07 percent at 10,289.91.
During Monday's session, Largan hit a high of NT$5,095.00, the highest the stock has ever scaled. It was also the first time Largan returned to the NT$5,000 level since June 26, when it closed at NT$5,000.00.
Because of high expectations for Largan sales in the third quarter and the entire second half of the year, when Apple will unveil its next-generation iPhones, several foreign brokerages have reiterated their buy recommendation for the stock.
In June, Largan posted consolidated sales of NT$3.86 billion, up 2.71 percent from a month earlier and up 7.35 percent from a year earlier.
Analysts attributed the rise to moves by its clients, including Apple, to build up their inventories in preparation for the launch of new models.
In the second quarter, Largan's consolidated sales totaled NT$11.3 billion, up 4.54 percent from a quarter earlier and up 12.57 percent from a year earlier. Its revenue for the first half of the year rose 21 percent year-on-year to NT$22.12 billion.
Based on the second quarter sales, analysts said, Largan could post NT$38 in earnings per share for the quarter, compared with NT$36.41 in the first quarter, and its gross margin could rise 1 percentage point to a new high of 72 percent.
Largan will hold an investor conference on Thursday, when the company will release its second quarter results and give guidance for the third quarter.
Source: Focus Taiwan News Channel