Tootoo.com announced today that one of their main LED component suppliers, Opto Tech, has landed a big order for LED displays for use on freeways in the U.S.
With the new order and its ongoing construction project of a large-sized LED marquee in Suzhou China, which is worth NT$5-600 million, Tootoo.com says that Opto Tech is very likely to see its single-month revenue break the NT$700 million mark, hitting a new high in the third quarter of this year.
Since the U.S. started to widely adopt LED displays to replace conventional signposts on freeways nationwide last year, Opto Tech is actively moving to vie for orders for the products and, successfully, enjoyed an overwhelming influx of orders recently.
In response to increasing demand for LED displays from the U.S. and Europe, Opto Tech has eagerly tried to procure additional finished LED chips from Nichia Corp. Japan, one of the world’s foremost LED suppliers, in hopes of securing enough raw material inventories to fill explosively growing orders.
In addition to most recent orders from the U.S., Opto Tech is also carrying out a project of a large-sized LED marquee in China, which is larger in size than its former one in Beijing and will be completed in the third quarter of this year. However, the project will definitely infuse strong momentum into the firm’s sales performance in the quarter. Noteworthy is that since successfully turning out its first LED marquee for the Beijing Olympics, Opto Tech has built its solid name in the line and reaped considerable profits.
Last year, sales of outdoor LED displays contributed NT$1.6 billion to the total revenue. This year, the sales revenue of Opto Tech is expected to surge 40-50% thanks to the new orders and the ongoing LED marquee project.
Some market researchers in Tootoo.com believe Opto Tech can effectively source Nichia’s LED chips at fairly competitive prices. This enables the firm to secure a higher gross profit rate of over 30%.