LED lighting maker Tons Lightology has disclosed order visibility from Europe has extended to over three months.
However, Tons said shipments may be delayed due to transportation issues, which could increase Tons' inventory level. Due to delays in shipment, Tons' inventory level has risen by NT$10-20 million (US$357,000-714,000) it said.
As Europe is a major market, Tons has developed indoor LED lighting products for DIY retail sales and outdoor LED lighting for the non-retail segment.
For own-brand shipments, Tons focuses on the China and Taiwan markets. While demand in Taiwan has rebounded since first-quarter 2021, the China market remains weak currently but will rebound in second-half 2021, it said.
Due to increases in cost for materials, Tons said it hiked quotes for newly received orders in April-May 2021.
Tons recorded consolidated revenues of NT$363 million for January-May 2021, growing 38% on year. It recorded gross margin of 31.3% for first-quarter 2021, and expects over 30% in the second quarter. OBM shipments took up about 18% of the first quarter's revenues and Tons expects the proportion to remain so for the whole of 2021.
LED penetration of lighting in the global market is forecast to keep rising from about 50% at present to over 70% in 2025, according to industry sources.
