Largan Precision's May Revenue Decreases Month-on-Month, Increases Year-on-Year; June Momentum Expected to Decline

Largan Precision, a prominent name in the optical lens industry, announced its May revenue figures, reaching NT$4.59 billion. This represents a 14% decrease from the previous month but a significant 43% increase compared to the same period last year. The company's cumulative revenue for the first five months of the year stands at NT$25.495 billion, marking a 15% year-on-year growth.

Despite steady customer demand, Largan anticipates a dip in shipment momentum for June. This projected decline is attributed to scheduling adjustments rather than a lack of orders. The company's chairman, Lin En-ping, previously noted that potential increases in smartphone prices due to memory chip shortages could impact end-market sales.

Beyond its core mobile phone lens business, Largan is actively pursuing diversification. The company is focusing on Fiber Array Units (FAU) as its second priority business. Largan is currently preparing samples for this new product line, with production capacity development expected to take one to two years, potentially leading to mass production as early as next year.

Largan showcased its technological advancements at the recent Taipei International Computer Show (Computex), featuring multi-channel Micro Lens Arrays (PMLA) and Fiber Arrays alongside its subsidiary, Advanced Optoelectronics (3362). The company is scheduled to hold its shareholders' meeting on June 9th, where Lin En-ping is expected to provide further insights into the company's operational outlook. In terms of product mix for May, lenses with 10-megapixel resolution constituted the largest share (50-60%), followed by products with 20-megapixel resolution (10-20%), other products (20-30%), and 8-megapixel lenses (below 10%).

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Due to memory chip shortages, smartphone prices may increase, affecting terminal sales momentum.