Edison Opto’s Profit Grows following Its Shift to Automotive LED Lighting Modules

Taiwanese LED packager Edison Opto has shifted its business focus from LED lighting to LED automotive lighting modules due to the decreasing profit of its conventional lighting business. The portfolio adjustment has come into effect with the company reporting the highest profit margin in the past five year despite its lukewarm revenue performance.

(Image: Edison Opto)

Edison Opto posted a revenue of NT$ 639 million (US$ 20.71 million) for 3Q18 with on quarter decrease of 14% and on year decrease of 7.4%. However, the quarterly profit margin came to the highest point in the past five years at 19%. The accumulated revenue of the past three quarters was NT$2.07 billion (US$ 67.22 billion), up by 7.9% YoY. The gross profit margin has grown by 3% YoY to 15.9%.

The company has continued to cut down the proportion of conventional lighting components and push the business of LED automotive lighting modules in the emerging market including South East Asian countries and India for improving profit growth. Edison Opto aims to raise the proportion of LED automotive lighting module to 70% in 2019.

In response to its growing business in LED automotive lighting modules, Edison Opto also plans to expand its capacities. Currently, 30 percent of its revenue comes from clients in the US and Europe market, thus, the company will build the new production lines in Taiwan instead of China to avoid the tariffs. Edison Opto also revealed possibility to set new facilities in the U.S. in the near future.

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