Taipei, Dec. 6 (CNA) Shares of Largan Precision Co., a supplier of smartphone camera lenses to Apple Inc., closed lower Friday as investors took profits, taking advantage of gains seen earlier in the trading session in the wake of a new monthly high in sales for November, dealers said.
"The stock had a strong showing yesterday on high hopes of the strong November sales and continued to steam ahead in the early morning session after the sales report," equity market analyst Andy Hsu said. "It was no surprise that it encountered a downturn as investors pocketed gains on the news."
After soaring 7.05 percent Thursday, Largan shares fell 0.42 percent to end at NT$4,690.00 (US$153.77) after hitting a high of NT$4,755.00 soon after the local equity market opened.
In a statement released that day, Largan said it posted NT$6.66 billion in consolidated sales for November, up 0.46 percent from a month earlier and up 66 percent from a year earlier.
It was the fifth consecutive month in which Largan had posted a month-on-month increase in sales, and the fourth straight monthly revenue high in the company's history.
"The November sales growth had been pretty much factored in during recent trading sessions, as Largan benefited from better-than-expected shipments of the latest iPhones," Hsu said.
Apple unveiled three models in its latest iPhone 11 series with an upgrade in hardware specifications in September. Among the three, the higher-end iPhone 11 Pro and iPhone Pro Max are equipped with a three- lens camera, and Largan, which has taken the lead over its peers to roll out multiple lenses for smartphone production, has secured an increase in orders from Apple, analysts said.
In November, 20 megapixel lenses and higher, which command a higher profit margin, accounted for between 20 percent and 30 percent of Largan's total sales, while 10 megapixel lenses made up 50 percent-60 percent, and 10 megapixel-8 megapixel lenses represented 10 percent-20 percent, the company said.
In addition to the orders from Apple, foreign brokerages said Largan has also benefited from orders placed by Chinese smartphone brand Huawei Technologies Co. and South Korea's Samsung Electronics Co., which are competing in the global high-end smartphone market by taking advantage of the Taiwanese supplier's technology strength.
One Asian brokerage said Largan is expected to see its portfolio improve, strengthening its bottom line.
In the first 11 months of this year, Largan's consolidated sales stood at NT$55.67 billion, up 19 percent from a year earlier, according to company data.