Largan's Feb19 revenue grew by 14% YoY to NTD2.532bn

Largan (3008-TW) announced its earnings report today on March 5th. Its Feb19 revenue reached NTD2.532bn (-24.32% MoM, +14% YoY), hitting a 12-month low. Its JAN19-FEB19 revenue was NTD5.885bn (+2.62% YoY). Largan told that with the increase of customer"s ramp-up and working days, the company’s MAR19 revenue is expected to increase further.

Regarding Largen’s shipment in Feb19, lens with 20-megapixel accounted for 50-60%, lens with 8 million pixels accounted for 10-20%, lens with 20-megapixel accounted for 20-30%, and others accounted for 10%. Lens with 20-megapixel or above maintained the same percentage as it was in Jan19.

Largan’s order visibility of optical components reached about 2 months for now. There was no surprisingly positive catalyst in 1H19 and has entered low-season in 1Q19 as tradition.

Han Cheng Huang, a securities investment analyst, pointed out that since Largan’s 4Q18 revenue dropped, and the low-season effect is expected to be more notable in JAN19 and FEB19, its MAR19 revenue growth remains to be seen. The market is also expecting to see how Largan is likely to benefit from smart phone with multi lens camera. However, the volatility of short-run stocks is inevitable, and the declined turnover is the buying point for the mid/long term layout.