Epistar Chairman B.J. Lee upheld a positive outlook for the LED industry in 2Q15, following surging orders in May, reported UDN.

“It would be unreasonable” for Epistar shares to fall below price/book (P/B) ratio of NT $53.19 (US $1.74) , since LED lighting has less than 10% market share and there is still significant room for growth, said Lee.

As for market rumors that Epistar incurred losses in 1Q15, Lee emphasized the company’s total revenue was at least NT $500 million, by combining its profiting operating business from 1Q15 and non-operating revenue. Hence, the company’s 1Q15 financial results will be better than market expectations. Epistar will be holding a board meeting next week.

Epistar’s orders in April was up 10% compared to March, and benefiting from rising LED TV backlight orders in May, the growth momentum has picked up. The company’s orders had significantly increased.

Lee emphasized the global LED lighting market demands remained strong in 2015, and LED lighting market penetration rates have gradually increased. Despite sliding ASP, overall revenue has shown growth. Estimated LED bulb volume for 2014 has doubled from 1 billion LED bulbs to 2 billion bulbs.

However, LEDinside has also observed large international lighting manufacturers including Philips and Osram have separated some of their lighting businesses and adjusted their LED chip business. This indicates the LED market is maturing, and there are market possibilities of restructuring. Philips has also emphasized it will be strengthening smart lighting products and related operations, and that the company will focus on businesses with high gross margin. This is also something for the industry to investigate.