Largan cash dividend proposal of NT$68 per share approved

2019/06/12 13:29:48 fontsize-small fontsize-default fontsize-big
Largan cash dividend proposal of NT$68 per share approved

Taipei, June 12 (CNA) Shareholders at an annual general meeting held by smartphone camera lens maker Largan Precision Co. on Wednesday approved the company's proposal to issue a cash dividend of NT$68 (US$2.17) per share on its 2018 earnings.

Largan's payout is the highest of all listed companies on Taiwan's main stock exchange and the over-the-counter market on 2018 earnings, not surprising given that it also has the highest stock price of any listed company in Taiwan.

Based on Largan's earnings per share of NT$181.67 in 2018, the dividend payout ratio was 37.43 percent.

The 2018 dividend payout was lower than the cash dividend of NT$72.5 the Apple supplier distributed last year, though the dividend payout ratio was relatively the same at 37.4 percent, the high end of Largan's target payout ratio range of between 35.2 percent and 37.4 percent.

Based on closing price of Largan stock of NT$3,575.00 on Tuesday, the dividend yield reached was about 1.9 percent.

At the annual general meeting, shareholders also approved a reshuffle of Largan's board of directors, which allowed the family of Scott Lin (林耀英), co-founder of the company, to take three of the five seats assigned to non-independent board members.

Analysts said the board reshuffle is expected to stabilize Largan's ownership by reducing the odds of a fight among majority shareholders for control of the company.

After the shareholders meeting, Largan CEO Adam Lin (林恩平) said that despite an escalating trade war between the United States and China, Largan expected to see an increase in orders from its clients because the peak season for the consumer electronics market begins in July.

Lin said Largan will likely report higher sales in July than in June, after the company warned last week that June revenue could fall from May because of weakening demand.

Largan will also stick to its plan to expand production capacity in the second half of the year, Lin said.

In May, Largan posted consolidated sales of NT$5.03 billion, up 0.7 percent from a month earlier and up 16.4 percent from a year earlier.

Twenty megapixel lenses or more advanced lenses, which command a higher profit margin, accounted for 20-30 percent of Largan's total sales in May, 10 megapixel lenses made up 50-60 percent, and 8 megapixel lenses represented 10-20 percent, a product mix similar to April, Largan said.

In the first five months of this year, Largan's consolidated sales totaled NT$19.84 billion, up 19 percent from a year earlier.

(By Han Ting-ting, Jeff Chang and Frances Huang)
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