Tangshi Lighting predicts that the LED market is expected to recover in Q3 this year

LED professional lighting manufacturer Tongshi Lighting Co., Ltd.’s net profit per share last year was NT$1.35 (NT$, the same below), which was relatively stable compared to most peers. The company believes that the factors affecting the global economy are gradually weakening. From the perspective of the industry cycle, the LED market has a chance to recover in the third quarter. If the European market returns to normal, it will help the company’s operations this year.

Last year, Tangshi Lighting's operations declined due to the impact that its main customers and market focus were in the European market, and its own brands were locked in the mainland Chinese market. The company emphasizes that its end market is dominated by customized fields, including corporate buildings, commercial spaces such as department stores, museums, and various exhibition venues. Its main customers are more directly related to corporate capital expenditures, the construction market, and the real estate field, but are relatively less related to the consumer product market.

Tangshi Lighting pointed out that from the perspective of the global lighting market, according to data from professional research institutions, the global lighting market is affected by the global economy and construction industry boom. The overall market size in 2021 will be US$133.1 billion, a growth of 3.2% compared with 2020. It is predicted that by 2026, the global lighting market will grow to US$148 billion, with a compound annual growth rate of approximately 2.2%. The penetration rate of LED lighting products in the market is expected to reach more than 80%. Once the market continues to grow, it will also help the company's operations.

Tangshi Lighting's net profit per share last year was 1.35 yuan, which was relatively outstanding compared to other LED manufacturers that were generally in losses or on the verge of loss. The board of directors decided to allocate a cash dividend of 1.62 yuan per share last year after adding up the accumulated undistributed earnings.