Largan repurchases NT $ 1.4 billion of its shares

BOOSTER PRICE:
Largan Precision Co said in a regulatory filing that the average repurchase price was NT $ 2,084, which is the highest for a company listed in Taiwan.

  • By Chen Cheng-hui / Journalist

Largan Precision Co (大 立 光), a leading supplier of smartphone camera lenses, said on Friday it had bought back 672,000 of its own shares in the past two months, or 0.5% of its shares. in circulation, for NT $ 1.4 billion (US $ 50.47). million).

The number of shares repurchased represented half of the shares the company had planned to acquire on the open market to support its price.

Largan stock closed 0.61% lower at NT $ 2,445 in Taipei trading on Friday, after falling 23.47% so far this year on weak revenue and a lower profitability.

Photo: David Chang, EPA-EFE

During the repurchase period, its share price rose 21.33%, according to data from the Taiwan Stock Exchange.

On October 26, Largan began executing the company’s first buyback program, aimed at repurchasing up to 1.342 million shares – or 1% of its outstanding shares – at NT $ 2,025 to NT $ 3,300 per action.

Largan said in a regulatory filing on Friday that the average repurchase price was NT $ 2,084, which is the highest for a company listed in Taiwan.

Last week, the stock rose 7.71% after two foreign brokerage firms raised their price target for Largan’s shares to NT $ 2,600 and NT $ 2,990 respectively, on the expectation that the Apple Inc’s supplier would benefit from an industry trend to adopt more high-end lenses per smartphone. , as well as the growing demand for automotive optical components next year.

As a leading manufacturer of optical lens modules, Largan also produces real image sights and other optoelectronic parts.

Largan has signed a long-term deal with a major Chinese smartphone brand, TF International Securities Group Co (天 風 國際 證券) analyst Kuo Ming-chi (郭明 錤) said in a report on Monday, adding that the orders to Chinese customer are expected to increase. shipments of 20 percent per year, compared to a previous forecast of shipments down 15 to 20 percent.

IPhone camera upgrades over the next two years would increase Largan’s market share, revenue and profit, Kuo said, without providing further details.

Largan posted net profit of NT $ 13.54 billion in the first three quarters of this year, down 23% per year, with earnings per share of NT $ 100.91.

The company’s cumulative revenue for the first 11 months fell 16.79% year-on-year to NT $ 42.46 billion, according to company data.

In addition, the Taichung-based company on Friday obtained approval to invest NT $ 34.2 billion in a factory extension at Taichung Industrial Park (臺中 工業 區) as part of the government’s “Invest in Taiwan, ”the InvesTaiwan service center said in a statement.

Since last year, Largan has started construction of factories and installed smart machines in the industrial park, the center said, adding that the investment is expected to create 2,500 jobs.

The company is committed to continuing to expand application services for smart wearable devices and focus on high-end production technology in Taiwan, the center added.

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