Kinko, Calin Boost Capacity in Line With Prosperous Cannon Camera Sales

Taipei, Dec. 20, 2011 (CENS)--Kinko Optical Co., Ltd., and Calin Technology Co., Ltd. have announced plans to boost production of their optical lenses in line with brisk shipments at Cannon, their major contract buyer.

Kinko Chairman C.C. Chen yesterday announced his company will spend NT$500 million (US$16.6 million at US$1: NT$30) on adding capacity to its digital single lens reflector (DSLR) lines to meet rush orders from Cannon, whose DSLR cameras are in brisk demand. Cannon contracts now account for 34% of Kinko’s sales turnover.

Chen said when the expansion is completed, the company’s production capacity will rise to five million reflectors a month in 2013, up from current 3-3.3 million units. DSLR manufacturing is expected to boost the company’s sales and earnings at lucrative rates in 2012.

Chen pointed out that added capacity will be primed for high-end lens production whereas existing production lines will focus on plastic lenses and glass molds. The company will target its certified five-megapixel plastic lenses at brand-name camera suppliers in mainland China and Taiwan.

Kinko is also looking to drum up orders from Nikon, whose contracts now comprise around 5.08% of Kinko’s annual revenue.

Calin will plow NT$800 million (US$26 million) in 2012 into production boost, planning to double lens output to three million units a month. The company is counting for Cannon for over 90% of sales.

Mostly thanks to Cannon orders, both Kinko and Calin are estimated to have lucrative revenue for the fourth quarter of 2011. Kinko’s revenue of NT$651 million (US$21 million) for October hit new high. In November, its revenue declined to NT$603 million (US$20 million). Calin saw its monthly revenue hit new highs for four consecutive months until November, at which time its revenue was NT$151 million (US$5 million).

Industry executives estimated Kinko to earn NT$2.3-2.5 per share in 2011, given the NT$1.38 per share in after-tax net income it earned in the first three quarters. They put Calin’s EPS for this year at NT$2 or so.