Lin En-ping, chief executive of the camera lens maker, shared his opinion during the firm’s quarterly investors’ meeting yesterday.
He cited an increase in shipments for 8-megapixel lenses, yet if there is an overall shipment decline, then the gross profit margin for Q4 may drop on a quarterly basis.
During the meeting, Largan announced its Q3 results. Combined sales for the July-September period were NT$4.394 billion, a rise of 8.09 percent from Q2 and 26 percent from the same period last year. The figure was an all-time high.
Gross profit was NT$2.016 billion, translating into a gross profit margin of 45.88 percent for the third quarter, the highest since Q3 of 2010.
Pre-tax profit and net profit were NT$1.893 billion and NT$1.745 billion, respectively, translating into Q3 earnings per share of NT$13.01.
For the first three quarters, sales were NT$11.971 billion, gross profit NT$5.347 billion, gross profit margin 44.66 percent, pre-tax profit NT$4.541 billion and net profit NT$4.038 billion, translating into EPS of NT$30.1.
According to Lin, October orders declined from September due to “the overall macroeconomic situation.” While the firm has obtained orders from all major clients, some have adjusted orders upward and some downward, he said.
Currently, order visibility is for about one month, and the situation for November and December looks murky right now, he said. “That’s why we are holding a less optimistic outlook for the fourth quarter,” he said.
Last quarter, 5-megapixel lenses accounted for 50 percent of all shipments, while 8-megapixel ones accounted for 20 percent. According to Lin, Q4 shipments of 8-megapixel lenses are expected to increase, and the product is expected to become a mainstream.
Orders for low-end products generally declined due to the slowdown, Lin said.
Largan, one of the most expensive shares in Taiwan, yesterday closed at NT$667, down 2.63 percent.
Similar Posts:
- Pegatron announces Q1 profits drop by 35 percent
- Smith & Nephew In Good Health
- Foreign carmakers hold back on donations, despite profits
- China industry profits dip as slowdown takes toll
- Acer unveils 1st cloud-based solution
