LED lighting product maker Tons Lighting Inc (湯石) yesterday said products for industrial and commercial use are expected to continue driving its sales this year.
The company told investors at a pre-initial public offering (IPO) conference that it aims to develop more specific-use LED products for venues such as museums, luxury hotels or department stores to enhance its profitability.
Tons Lighting’s LED products accounted for about 55 percent of its total sales last year, with the majority of them being customized products designed for industrial and commercial use with high price-performance ratio.
“Generally, the LED market is booming as more companies, especially large-sized ones such as museums and department stores worldwide, are starting to replace traditional bulbs with LED products to reduce electrical cost,” company chairman Tom Tang (湯士權) said.
Having recently received a substantial amount of orders, the company predicts that about 40 percent of its annual sales this year are likely to be generated during the first half of the year, Tang said.
The company, based in New Taipei City (新北市), plans to debut its shares on the GRETAI Securities Market on June 17 and has tentatively set its IPO price of NT$33 per share.
Its shares traded at NT$40 on the smaller Emerging Stock Market yesterday, down 1.57 percent from Tuesday’s session.
Tons Lighting has 21 years of experience in the incandescent light bulb business and LED lighting product manufacturing in Taiwan.
It designs and manufactures LED lighting products, particularly those for industrial and commercial uses, in Zhongshan, Guangdong Province, China.
The company said its two China-based subsidiaries, Titan Lighting Co Ltd (中山泰騰照明) and Tons Lighting Co Ltd (中山湯石), are in charge of product exporting and importing respectively
Tons Lighting’s clients include the world’s leading LED lighting product manufacturers, such as Germany’s Osram GmbH, Royal Philips Electronics NV of the Netherlands, Japan’s Nichia Corp and the BJB Enterprises of the US.
European countries contributed up to 61 percent of annual sales last year, while Asian countries contributed to 30 percent, with Oceania and the US making to 8 percent, company data showed.
While seeking to increase sales in emerging markets in Asia and Africa, Tons Lighting is also aiming to increase sales of its own-brand lighting products to transform from an original design and equipment manufacturer to an independent LED lighting product brand.
Tang said sales of own-brand lighting products accounted for 10 percent of the company’s total sales last year.
Sales last year grew 7.32 percent to NT$1.19 billion (US$39.54 million) from NT$1.1 billion in 2011.
Profit expanded 6.11 percent to NT$89 million last year from NT$83.88 million in 2011, with earnings per share of NT$2.32, up 7.9 percent compared to NT$2.15 from a year ago.
Sales of LED products accounted for 55 percent of total sales last year, and sales of halogen lamps, high-intensity discharge lamps and fluorescent lamp accounted for 30 percent, the company said.