Largan Precision Co. posted record quarterly earnings as Taiwan’s leading smartphone lens maker capitalized on performance bonuses from its customers and improved product mix.
Net income jumped 75% to NT$8.68 billion ($276 million) in the fourth quarter from a year earlier, with earnings per share hitting NT$65.01. The gross margin climbed to 59.15%, approaching the 60% mark, helped by better production yields and customer incentives.
CEO Lin En-ping expects combined shipments for January and February to exceed last year’s levels. However, he cautioned that first-quarter profit margins are unlikely to match the fourth quarter’s stellar performance.
The company is expanding beyond smartphones into robotics vision systems, with Lin revealing that Largan has submitted samples to multiple clients. While the hardware development is complete, mass production timeline remains uncertain pending software readiness.
On the emerging ultra-thin smartphone trend, Lin acknowledged manufacturing challenges due to compressed lens designs. The company has some production capacity but volumes remain limited.
Largan maintains visibility on full-year orders from its smartphone customers, primarily focusing on main cameras for flagship models. The company’s 2023 earnings per share reached NT$194.17, second only to 2019’s NT$210.7.
