Largan Q4 Gross Margin Hits New High, Boosts EPS

18 Jan

Largan Precision Co., Taiwanese camera lens manufacturer, saw its Q4 net profit rise to the highest level of 70.65 percent and its EPS doubled since Q1 2016.

Largan, the priciest stock in Taiwan, announced during its investor conference on Jan. 12 that its Q4 sales reached NT$15.72 billion (US$496.34 million), up 10 percent from the previous quarter and up 2 percent year-on-year.

In Q4, Largan’s gross margin rose to 70.65 percent, hitting a new high for the third straight quarter. The pre-net profit was NT$11.11 billion. After-tax net profit was NT$8.45 billion, up 21.4 percent quarterly and up 25.7 percent year-on-year. Largan also reported record-high EPS of NT$62.99 in Q4, up from an earning of NT$27 per share in Q1 2016.

However, Largan’s 2016 sales totaled NT$48.35 billion, down 13 percent from 2015. The Taiwanese company managed to increase its net profit by 1 percent to NT$32.42 billion by adjusting product combination. For 2016, Largan’s EPS was NT$169.4, slightly lower than the NT$180.08 in 2015.

In terms of product lineup, lens with over 10MP accounted for 70-80 percent of all products in Q4 2016, up from 50 percent. Lens with 8MP took up another 10-20 percent; the remainder was lens with 5MP or less.