Largan Precision , Deeply cultivating the medical Industry, Sleep Detection Device expected to bear fruit."
Largan Precision, in addition to achieving a leading position in the optical lens industry, it is actively expanding into the medical field. By leveraging its own-brand “Largan Medical” testing contact lenses market. A subsidiary “Largan Health Technology (LHT)”, focuses on sleep recorder. Due to a positive outlook on significant market demand, there is a high chance for fruitful results this year.
Largan Precision, a major role in the Taiwanese optical industry, has been deeply cultivated in the medical business for about 10 years. CEO Lin En-Ping stated on the 11th that the investment in the contact lens brand Largan Medical has gradually expended the market. With the benefits of economies of scale, Largan Medical has turned losses into profits.
A subsidiary “Largan Health Technology (LHT)”, has achieved new results. Its new generation sleep detection system has obtained certifications from the FDA, TFDA, and CFDA. Currently, it is gradually being promoted in medical academy, the initial target of market is primarily on Taiwan.
In 2018, Largan Medical already had about 2,000 distribution points. In addition to these, it collaborated with Watsons, adding approximately 400 Watsons distribution points. In 2018, it also began to enter overseas markets such as China, Hong Kong, and Macau. With the boost from economies of scale, Largan Medical finally turned losses into profits last year. In terms of OEM orders, negotiations are in progress, and there are hopes for a better profit this year compared to the previous year.
Lin En-Ping pointed out that from the perspective of the Taiwan market, many people suffer from sleep disorders, up to 40% to 50% of the population affected. However, previous sleep detection systems were not user-friendly. The sleep detection device developed by Largan Precision, responsible for software development and module assembly, replaces the previously complicated sleep detection systems. Users only need to attach the sleep detection device to their heart, and it can measure the user's sleep condition, quality, and whether there is sleep apnea, helping users identify the cause of insomnia.
Lin En-Ping stated that the burn-in period has passed, and this year marks the beginning of the recovery period. Largan Health AI-TECH has the opportunity to contribute to revenue this year. As for whether there will be an IPO in the future, it cannot be evaluated at this stage and will depend on future developments.
Lin En-Ping mentioned that the chip design, software, and product manufacturing of sleep detection device are all in-house. It collaborates with various medical centers, including National Taiwan University, Taichung Veterans General Hospital, China Medical University Hospital, Kaohsiung Medical University, and Shin Kong Medical Center. Several medical centers have expressed interest in adopting the device.
Regarding trends in mobile phone lenses, Lin En-Ping analyzed that in 2019, specifications for optical lenses on mobile phones continued to upgrade, with trends towards higher pixels, multiple lenses, and improved aperture. For example, an aperture of 1.6 is now a common specification, and there are products with an aperture of 1.4 this year. To overcome the design bottleneck, some smartphone brands adopt a waterdrop-shaped small lens design for the front camera, and specifications for the front camera continue to rise, reaching around 36 million pixels, and even 40 million pixels. For rear cameras, specifications have increased to 20 million pixels, and models with a 3-lens design have become more common.
Lin En-Ping emphasized that the growth of the optical lens industry depends on actual sales performance in the terminal mobile phone market. Currently, Largan Precision has several projects with Korean customers in progress. The goal is to secure orders for popular models from Korean customers. As for the optical fingerprint recognition lens project, which was previously not favored, customers are now reaching out Largan Precision themselves. In response to customer demands, as long as the price is reasonable, Largan Precision will accept orders.
Lin En-Ping admitted that although Largan Precision has also invested in the layout of automotive lenses and has shipped automotive lenses, at present, due to the relatively low specifications of automotive lenses and lower shipment quantities compared to mobile phone products. Automotive lenses are not the main product for Largan Precision in the short term."