All data are based on the daily closing price as of October 9, 2024

Largan Precision Announces Dividend Amid Robust Financial Performance

Payout and foreign exchange strategy highlight steady growth
Taiwan
l 3008.TW Blue Chip 150
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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.

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