Taipei, Taiwan-based smartphone camera lens maker Largan Precision Co. posted its highest sales in eight months for July, which market analysts attributed to its efforts to improve its product portfolio.
In a statement on Sunday, Largan reported consolidated sales of NT$5.33 billion (US$174 million) for July, an 18.2 percent monthly growth and an increase of 19.57 percent from a year earlier.
The July figure was the highest since November 2017, when the company posted NT$5.61 billion in consolidated sales.
In July, 20 megapixel lenses, which command a higher profit margin, accounted for 10-20 percent of total sales for the company, one of the major suppliers to Apple Inc.
Moreover, Largan's 10 megapixel lenses and more advanced products made up 60-70 percent of its July sales, indicating that it has been benefitting from an better product mix that includes more high-end offerings.
In the first seven months of the year, Largan recorded a 0.28 percent year-on-year decline in consolidated sales to NT$26.50 billion.
Looking ahead, Largan said its sales growth is expected to continue to accelerate, which will produce better third-quarter results.
Its second-quarter sales totaled NT$12.30 billion, up from NT$8.88 billion a quarter earlier.
According to analysts, Largan will see higher growth in the third quarter partly as a result of orders from Apple, which is expected to launch its next generation iPhone in September.
In addition, analysts said, Largan is likely to ride the wave of increased use of multiple lenses by international smartphone brands.
With such an outlook, Largan is likely to post NT$190-NT$210 in earnings per share in 2018, compared with NT$193.65 in 2017, analysts said.
On Monday, shares of Largan closed unchanged at close at NT$5,130.00, off an early high of NT$5,240.00 on the Taiwan Stock Exchange, where the weihgted index ended up 0.11 percent at 11,024.10.
Source: Focus Taiwan News Channel