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Largan Surpasses Expectations with Record June Revenue, Forecasts Continued Growth

June revenue hits NT$4.041 billion driven by strong demand for new devices, optimistic outlook for July
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Largan Precision reported an unexpected revenue surge for June, reaching NT$4.041 billion, marking a 16% month-on-month increase and a 50% year-on-year rise. This impressive figure, the highest in five months, was driven by robust demand for new devices, according to the company’s announcement on July 5.

Originally, Largan anticipated June sales to mirror May’s figures. However, demand for new devices significantly boosted revenue beyond expectations. For the second quarter, Largan recorded NT$10.985 billion in revenue, a 3% quarterly decrease but a notable 34% annual increase. The first half of the year saw consolidated revenue of NT$22.298 billion, a 29% year-on-year growth.

As the main supplier of iPhone lenses, Largan is poised to benefit from the upcoming release of the iPhone 16. Market analysts predict a revenue boost through the fourth quarter, fueled by strong new phone sales. Although Largan has not disclosed specific financial forecasts, an investor meeting chaired by Chairman Lin Enping on July 11 is expected to address shipment momentum and order proportions for new devices.

Investor confidence in Largan’s future performance remains high. Recent trading activity saw significant buying from major institutional investors, propelling the stock price to a three-year high of NT$2,970 before closing at NT$2,895, up NT$55. Since June, institutional purchases have exceeded 4,222 lots, with foreign investors, investment trusts, and proprietary traders contributing significantly.

Analysts forecast a high-standard upgrade cycle for smartphones next year, with Largan maintaining its market dominance and pricing power in the periscope lens segment due to its strong patent portfolio. Additionally, Apple’s planned AI phone and iPhone SE4 releases in the latter half of the year are expected to further bolster Largan’s performance.

Chairman Lin Enping noted that the peak season typically spans September to November and expressed optimism about this year’s sales, despite acknowledging that the overall industry outlook is less favorable compared to last year. The company anticipates better performance in July, driven by robust demand for mid- to low-priced phones, even as high-end phone sales face economic challenges.

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