Orders from European Clients to Double Unity Opto Profits in 2016

Taiwanese LED manufacturer Unity Opto Technology received orders from the European market and will be shipping in total products valuing US $3 million to US $4 million in a single quarter, the company is targeting US $30 million shipment volume.

The company’s EPS in the first three quarters reached NT $0.6 (US $0.018) per share and is expected to reach NT $1 (US $0.03) in 2015. Financial institutes in Taiwan estimate the large European order will spur the company revenue to grow 20% growth and generate more than NT $10 billion (US $304.7 million) in revenue. The company’s consolidated revenue is expected to double in 2016.

Following Liteon, Everlight, and Delta’s gradual exit from the LED bulb market, Unity Opto intends to deploy economics of scale and optimizing lighting solutions to compete with Chinese manufacturers.

Unity Opto shipped 20 million LED bulbs in 2014 and is projected bulb shipment volume will reach 45 million in 2015 and 80 million by 2016. This will make the company one of the top three largest global LED bulb manufacturers. Meanwhile, Unity Opto has been one of the few profitable LED lighting manufacturers, due to its design capacity, said the company Chairman Alpha Wu.

Retailers and distributors own LED bulb brands outsourced to Unity Opto caused Philips bulb sales to slide by more than 50%, indicating the Taiwanese bulb maker products are very competitive, said a manager of grocery retailer.

After Unity Opto gained significant market presence in the North America market, the company started to ship to Europe too. The company plans to invest in Hannover Messe 2016 and aims to receive orders worth at least US $30 million.

Unity Opto’s revenue was affected by Philips’ low pricing policy in the first half 2015, which led to continual decline in revenue growth. However, the company’s revenue continued to climb up between August and November as Philips’ low- price promotion period ended.

Meanwhile, with the adjustment of market prices and inventory in the last quarter, and European and North America clients have started to place order. The outlook of lighting products is promising in the fourth quarter.

According to the company Chairman, the LED lighting industry has recovered from the industry low point during third quarter, and projected the market will achieve steady growth from first quarter of 2016 onwards.

The company’s consolidated revenue in the first 11 months declined 11.8% to NT $7.36 billion (US $224 million), and revenue in December is expected to surge. The company’s total revenue is expected to reach NT $8 billion (US$ 243.7 million) to NT $8.1 billion (US $246.8 million). It is estimated that the company’s annual revenue could exceed NT $10 billion (US $304.7 million) thanks to European orders and growth in LED lighting and backlights sales.

 

(Translator: Emma Chang, Editor, LEDinside)

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