Largan Precision, a key supplier of iPhone lenses, has declared a cash dividend of NT$40 (US$1.28) per share for the first half of 2024, distributing approximately NT$5.34 billion (US$171 million) in total. This represents a payout ratio of 50.3%, consistent with previous years. The dividend will be ex-dividend on August 15 and paid out on September 12.
In addition to the dividend announcement, Largan’s board approved a capital increase of up to US$1 billion for its wholly-owned subsidiary, Astro International Limited. This move aims to mitigate foreign exchange risks due to Largan’s primary use of the US dollar, enhancing natural hedging strategies. As of mid-2024, Largan held NT$115.3 billion (US$3.69 billion) in cash reserves.
The company reported a net operating profit of NT$7.85 billion (US$251 million) for the first half of the year, marking a 30% year-on-year increase. After-tax net income surged 52% to NT$10.69 billion (US$342 million), with earnings per share at NT$79.49 (US$2.54).
Chairman Lin Enping noted positive shipment trends, expecting production capacity to peak in Q4. Largan’s June revenue reached NT$4.04 billion (US$129 million), a 16% monthly and 50% annual increase.
The upcoming iPhone 16 launch is anticipated to drive Largan’s revenue growth into Q4. Despite recent market corrections, Largan’s stock has seen significant activity, closing at NT$2,775 (US$89) and peaking at NT$3,225 (US$103) in July.
Foreign investors hold 37.59% of Largan shares, reflecting strong institutional support and confidence in the company’s strategic direction and robust financial health.
