LARGAN PRECISION (TW), a company active in the Recreational Products industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 4 out of 4 stars, as well as its unchanged, moderately risky market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date December 28, 2021, the closing price was TWD 2,405.00 and...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Despite the overhang from the U.S. technology supply ban on Huawei, which led to a 25% pullback in Largan’s stock price between early May and June, it posted resilient results in the second quarter. Encouragingly, revenue grew 14.5% year over year, which is an improvement from 10.7% growth in the March quarter. Its gross margin rose to 69.6%, which is better than 64.2% from the previous quarter, and a percentage point better than the same period last year. We believe that much of the strong gr...
Despite the overhang from the U.S. technology supply ban on Huawei, which led to a 25% pullback in Largan’s stock price between early May and June, it posted resilient results in the second quarter. Encouragingly, revenue grew 14.5% year over year, which is an improvement from 10.7% growth in the March quarter. Its gross margin rose to 69.6%, which is better than 64.2% from the previous quarter, and a percentage point better than the same period last year. We believe that much of the strong gr...
We initiate coverage of Largan Precision with a narrow-moat rating and fair value estimate of TWD 4750.00 per share, implying a 2019 P/E ratio of 22.9x, which is at the high end of its five-year range. This reflects our optimistic outlook for Largan’s longer-term prospects because we believe it is well positioned to benefit from the rising adoption of multiple camera modules among handset makers, and the continued advancement in lenses technology, such as 3D and black lenses technology. Largan...
We initiate coverage of Largan Precision with a narrow-moat rating and fair value estimate of TWD 4750.00 per share, implying a 2019 P/E ratio of 22.9x, which is at the high end of its five-year range. This reflects our optimistic outlook for Largan’s longer-term prospects because we believe it is well positioned to benefit from the rising adoption of multiple camera modules among handset makers, and the continued advancement in lenses technology, such as 3D and black lenses technology. Largan...
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​Raise TP to NT$4,800: We fine tune our earnings estimate but raise our TP to NT$4,800 (from NT$4,500) based on a 2017F P/E of 18x vs. 17x previously, as we believe handset lens has become a seller’s market (see our supply chain checks in the second paragraph). Largan dominates this market, and we expect its earnings power in 2H16-2017F to boost its valuation multiple to a higher level. We continue to see robust migration to dual-cam & 6p lens and the gradual ramp-up of auto lens, while the ...
​Raise TP to NT$4,000: We raise our 2016/17F EPS forecasts by 3%/8% respectively given a better ASP & margin outlook and raise our TP from NT$3,700 to NT$4,000, still based on 16x 2017F P/E. While the share price has outperformed the TAIEX by 34% YTD, we believe robust migration to dual-cam/6p and the contribution from the new fab in 1H17 will serve as catalysts to both earnings and the share price in the mid- to long term. We also believe Largan is far ahead of Kantatsu in iPhone 7/7+ lens ra...
​We raise our 2016/17F EPS forecasts by 3%/5% respectively on a better than expected near-term outlook and higher dual-cam adoption. We raise our TP to NT$3,700 from NT$3,050 on higher 2017F earnings and switch to a target 2017F P/E of 16x (from 16x 2016/17F) to capture its 2017 earnings potential. In our view, Largan’s solid May/June revenues indicate that the iPhone transition has come to an end. While its share price outperformed the TAIEX by 24% YTD, we believe that the robust migration ...
​The analyst meeting was a mixed bag with good 1Q16 results on strong GM, but a weaker than expected 2Q16 sales outlook. We lower our TP to NT$3,050 from NT$3,150, as we trim 2016F earnings by 2%. Largan's share price is likely to stay volatile in the near term on a weak April & May. However, we stick to our positive thesis (dual camera, 6p) and expect a pick-up in sales/earnings in June/2H16. We suggest accumulating on weakness. Largan today indicated that all of its big customers are develo...
​Driven by competition among OEMs, QCOM/MTK’s dual-ISP integration and fast dual cam module price decline, we are seeing an increasing number of dual cam projects in the Android camp. We expect dual cam adoption in Android to take off strongly in 2H16, benefiting Largan due to its dominant market share.
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