Contact lens manufacturer PEGAVISION announced its Q3 financial results on the 27th. Quarterly revenue reached NT$1.889 billion, up 13.8% year-on-year. However, due to unfavorable exchange rates and pricing pressures in the Chinese market, gross margin declined to 51%, down 3 percentage points from the same period last year. Net profit after tax was NT$397 million, down 9.38% year-on-year, translating to earnings per share of NT$5.09.
For the first three quarters, cumulative revenue totaled NT$5.109 billion, up 1.7% year-on-year, with a gross margin of 52%, down 5 percentage points compared to the previous year. Net profit after tax was NT$1.199 billion, down 15.67% year-on-year, resulting in earnings per share of NT$15.38.
PEGAVISION explained that the Q3 gross margin decline was mainly due to unfavorable exchange rates and intensified market price competition, particularly in the Chinese market. Other regions also face long-term pricing pressures. On non-operating income, last year’s Q3 included approximately NT$39 million in foreign exchange gains, compared with only NT$13 million this year, resulting in non-operating income of NT$25.043 million, down from NT$48.855 million in the same period last year.
Despite profit pressures, PEGAVISION’s Q3 production capacity utilization was nearly at full capacity, outperforming the same period last year. The company noted that demand during this year’s “Double 11” sales period was significantly stronger than last year, with a substantial increase in shipments of silicon hydrogel products to Japan, boosting overall production and sales momentum.
Looking ahead, PEGAVISION expects Q4 gross margins to improve, primarily driven by further gains in capacity utilization compared to Q3, although exchange rate movements will remain a key factor. Assuming no significant appreciation of the New Taiwan dollar, gross margin performance is expected to exceed that of Q3. Current order intake for Q4 is strong, and negotiations for Q1 2026 orders have already begun. Analysts noted that while Q1 typically faces seasonal slowdowns, stable demand from Japanese clients should support operations above Q1 2025 levels.
In terms of capacity expansion, PEGAVISION’s new Vietnam plant Phase 1 was completed in the first half of this year, and certification processes began in October, with production expected to commence as early as Q4 2026, contributing additional capacity. Phase 2 of the Vietnam facility will be planned and scheduled based on market demand and capacity allocation progress. The company emphasized its continued focus on optimizing the product portfolio and increasing the proportion of high-margin products to counteract price competition and stabilize profitability.
Resource: 晶碩前三季財報EPS 15.38元 訂單能見度達明年第1季、展望正向
