Himax cancelled the dividend, not only because earnings decreased, but also because it invested in growth technologies.
The company's past was not as bright as its future: However, the company has a strong balance sheet (equity ratio= 53%) and probably returns 47% on equity this year (RoE has been lower in the seven years since 2014). Book value per share is $2.9 which means that Himax trades significantly above book value. Himax has 173.4 million shares outstanding (as of ) and the market cap is $2.2 bn. The company is doing extraordinary well and investors can be very optimistic for the rest of the year. Himax beat its previous guidance for the first quarter 2021: All in all, revenues of the non-driver IC business are expected to increase by low teens in the first quarter 2021. Main cameras in smartphones and 3D sensing for facial recognition algorithm are "growth opportunities for Himax beyond 2020."įurthermore, Himax sees a strong demand for its CMOS Image sensors, needed in web cameras and notebooks. Wafer-Level Optics (WLO) and Time-of-Flight (ToF) 3D sensing are important technologies to achieve optical high efficiency, and not many companies offer solutions to the industry. The preliminary Q12021 results indicate that Himax's revenue forecast was in-line with actual results and that shareholders can be very optimistic for the rest of the year.
TYME STOCK FORECAST 2025 DRIVER
However, the Company's display driver IC and Tcon shipments are still capped by supply shortage in foundry and packaging, despite firm demand from customers." (Forward-looking statement by the company in February 2021)įor the small and medium-sized driver IC business, the company expects a high-single digit increase caused by a capacity shortage because demand still surpasses supply.
TYME STOCK FORECAST 2025 DRIVERS
Recently, the Company saw customers proceeding with aggressive promotion in high-resolution models, that require high- end drivers and Tcons, in anticipation of sustained strong demand for home entertainment during the pandemic.
TYME STOCK FORECAST 2025 TV
"As TV sell-through remains strong and TV panel shortage increases, Himax's TV segment looks set to end the first quarter with a better than seasonal momentum of around 10% sequential growth. Himax is a market leader of large DDCI in China and expects revenue to increase in this segment by low teens. HIMAX 4Q20 Presentation DDIC (Display Driver IC) The global demand is expected to increase by 33% to 1.13 bn. Himax's biggest growth driver is the TDDI segment as the company is one of the leaders in the market while TDDI is steadily replacing DDCI. Growth opportunities TDDI (Touch and Display Driver Integration) Although the stock has risen significantly over the last six months, there is more room to climb further in the current economic environment. Himax is well-positioned for a longer period of higher earnings and accelerated growth by being a market leader in many technological areas which profit from a boosted demand.
Furthermore, Himax is engaged in smart sensing in smart AI devices as well as in microdisplays, another two growing markets which offer a great opportunity for Himax and in which Himax plays a major role already with technologies like Himax Ultralow Power CMOS Image Sensor (CIS), Himax Smart Sensing and LCOS for AR goggles.
The positive trends are here to stay for at least 6-8 more quarters with a strong demand for tablets, computers, displays, smartphones and a recovery in the automotive sector. As a consequence, the expected revenue growth for 2021 will increase earnings per ADS to $1.20 at least (conservative assumption) or to $1.52 in a best-case scenario. The tailwinds in the semiconductor industry has led to a margin expansion from around 20-22% to over 31% in Q42020 and 40.2% in Q12021. The technologies are used by well-known companies like Samsung ( OTCPK:SSNLF ), Google ( GOOGL ), LG, Lenovo ( OTCPK:LNVGY ) and many more. ( NASDAQ: HIMX), a fabless semiconductor company from Taiwan, serves several markets with its products for smartphones, TVs, tablets, monitors, automotives, and gaming. Photo by NatalyaBurova/iStock via Getty Images Investment thesis
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