Largan shares boosted by November sales data

Shares of Taiwan-based Largan Precision Co. (???), a smartphone camera lens supplier to Apple Inc., climbed Tuesday on its November sales data and upbeat outlook for December, dealers said.

The gains posted by Largan, a large-cap stock, helped pull the broader market out of the doldrums of the recent sessions after high-tech stocks rose on Wall Street overnight, they said.

Shares of Largan rose 2.65 percent to close at NT$3,675.00 (US$115) on the Taiwan Stock Exchange (TWSE) on Tuesday, while the weighted index ended up 0.98 percent at 9,250.77. Largan remained the most expensive stock on the Taiwan market and was the 10th largest cap stock on the main board as of Monday.

"Based on its revenue report, Largan joined other TWSE blue chips in posting significant gains today, pushing up the broader market and helping the weighted index recover from its losses in recent sessions," Mega International Investment Services Corp. analyst Alex Huang said.

Largan shares opened sharply higher after it reported its November sales data, which showed gains as a result of shipments to its biggest client Apple for production of the latest iPhones, dealers said.

In a statement Monday, Largan reported consolidated sales of NT$5.21 billion, up 3 percent from a month earlier.

The November figure was the highest since the same month last year, when Largan's revenue was NT$5.70 billion. It was also the second consecutive month that the company's consolidated sales exceeded NT$5 billion, after Apple unveiled its iPhone 7 and iPhone 7 Plus in September.

Largan said its production capacity for December was fully booked, as demand from its major clients remained strong, and its sales next month will be about the same as, or higher than, in November.

In addition to strong orders from Apple, Largan has benefited from solid orders from Chinese brands and greater use of dual camera lenses by international smartphone brands, dealers said.

However, the company's consolidated sales for the first 11 months of this year showed a 17 percent year-on-year drop to NT$42.91 billion.

Following the release of Largan's November sales data, a U.S.-based brokerage said it was keeping its "outperform" rating and target price of NT$4,500 on the stock.

Also in the Apple supply chain, metal casing maker Catcher Technology Co. (??) posted NT$8.21 billion in consolidated sales for November, up 0.3 percent from the previous month and the highest for the year.

Dealers have forecast that the company's fourth-quarter figure will exceed the NT$20.73 billion recorded in the third quarter, as a peak sales season approaches.

Shares of Catcher rose 1.29 percent to close at NT$236.00 on the main board Tuesday.

Source: Focus Taiwan News Channel