Himax Technologies, Inc.

Himax Technologies, Inc. (NASDAQ: HIMX) is a semiconductor company offering display driver integrated circuits (IC) and timing controllers for televisions, laptops, monitors, mobile phones, tablets, digital cameras, car navigation, and other consumer electronics devices. As of September 07, 2021, HIMX has 174.30 million American Depository Shares (ADS) listed and outstanding, with each ADS representing two ordinary shares.

Key Highlights

• The company reported a YoY surge of 95.34% in revenue to USD 365.26 million in Q2FY21 (ended June 30, 2021) compared to USD 186.98 million in Q2FY20.
• Net income for Q2FY21 increased to USD 108.89 million from USD 1.38 million reported in Q2FY20.
• On July 15, 2021, HIMX sponsored the tinyML vision challenge to promote tinyML Vision Technology among developers. During the challenge (hosted by tinyML Foundation), prizes worth USD 6,000 will be offered to encourage participants and promote machine learning problem solvers from various fields.
• On May 28, 2021, the company declared a dividend of USD 0.272 per ADS, paid on July 12, 2021, to shareholders of record on June 30, 2021.
• HIMX's net margin for Q2FY21 was 29.7%, significantly higher than the industry median of 13.9%.
• Its Debt/Equity ratio as of Q2FY21 was 0.26x.
• High ROE of 18.8% in Q2FY21 vs. industry median of 4.7%.
• Stock is currently trading below its crucial short-term as well as long-term 50-day and 200-day SMA support levels, a bearish indicator.
• Stock is currently leaning towards the higher end of the 52-week range of USD 3.28 to USD 17.88.
• HIMX's share price fell 2.50% in the past six months.

Technical Price Chart (as of September 07, 2021). Analysis by Kalkine

Conclusion: Considering the slight movement in the stock price in the past six months, significant topline growth, the surge in net income, and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 11.70, down 6.47% as of September 07, 2021.

*The reference data in this report has been partly sourced from REFINITIV.