LED lighting demand is a key player for Taiwan LED package manufacture growth in 2014, according to a recent report from Morgan Stanley. Everlight’s goal is to increase lighting revenue percentage to 30 percent in 2014. Morgan Stanley estimates that the company’s lighting operations will double, but that increase in product inventory still requires a lot of attention.

According to statistics by Morgan Stanley, Everlight will benefit from street light bids and injections from operation growth of subsidiary WOFI. Stock shares during the second half of 2013 surpassed TWSE (Taiwan Stock Exchange) performance reaching 29 percent. However, Morgan Stanley believes this is not a good time to enter the market.

LED lighting will continue to drive growth for Everlight in 2014, said Morgan Stanley. According to statistics from Everlight, 4Q13 lighting revenue proportions reached 25 percent and are estimated to reach 30 percent and higher in 2014. Morgan Stanley therefore anticipates that lighting revenue for Everlight will be double that of 2013 and that traditional SMD lighting will only grow 5 percent in 2014.
Additionally, Morgan Stanley also mentioned the company’s increase in inventory situation. According to analysis, the company’s 3Q13 inventory level was around NT $2.7 million (US $89.6 million) compared to NT 1.7 billion (US $56.5 million) in 3Q12. In order to reach a higher level, increase in inventory level must reflect the increase in lighting revenue proportions, especially inventory and lighting product portfolio correlation reaching 92 percent.

Everlight is still considered rather new in the lighting brand business. While Everlight continues to invest resources into extending channels, the company is also expanding their lighting business with inventory management an important focal point. Morgan Stanley therefore will focus on the whether the company’s inventory levels increase or decrease over the next few quarters.