Semiconductor demand is booming and HIMAX is ready to capitalize

Summary Semiconductor industry is rapidly growing, and demand is outpacing supply HIMX recent earnings exceeded expectations and they are well position for the coming months Analyst price target moved to $17.00 Market Overview The semiconductor industry is poised for faster growth in 2021 now that it has recovered from a cyclical downturn. World Semiconductor Trade Statistics predicts that chip sales will accelerate to 8.4% growth next year, reaching $469 billion in revenue. For 2020, it estimated that chip sales would rise 5.1% to $433 billion. That's after semiconductor industry sales fell 12% to $412 billion in 2019. Semiconductor industry sales returned to growth this year despite disruptions from the Covid-19 pandemic. Q4 Earnings – Feb 4 2021 HIMX recently released their Q4 earnings report and beat expectations – key points are highlighted below: Successfully secured more capacity for 2021 as compared to the level of Q4 2020, when we reached the recent peak quarterly shipment. FY annual 2020 revenues increased to $887.3M, next year this company will generate over $1.2Billion(remember Market Cap only $2.0B) Strong momentum across all major business segments in Q4. TV, monitor, automotive(thanks to EV) driver ICs and CMOS image sensor, large driver ICs, 23.3% of revenues, up 15.2% QoQ; small and medium-sized driver ICs, 64.5% of revenues, up Q4 Driver IC revenues for automotive up 32.4% QoQ as car makers resumed, Analyst Ratings Credit Suisse analyst Jerry Su raised the price target on Himax Technologies (NASDAQ: HIMX) to $17.00 (from $11.50) while maintaining a Outperform rating.

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Semiconductor demand is booming and HIMAX is ready to capitalize

bullish

Summary

  • Semiconductor industry is rapidly growing, and demand is outpacing supply
  • HIMX recent earnings exceeded expectations and they are well position for the coming months
  • Analyst price target moved to $17.00

Market Overview

The semiconductor industry is poised for faster growth in 2021 now that it has recovered from a cyclical downturn. World Semiconductor Trade Statistics predicts that chip sales will accelerate to 8.4% growth next year, reaching $469 billion in revenue. For 2020, it estimated that chip sales would rise 5.1% to $433 billion. That's after semiconductor industry sales fell 12% to $412 billion in 2019. Semiconductor industry sales returned to growth this year despite disruptions from the Covid-19 pandemic.

Q4 Earnings – Feb 4 2021

HIMX recently released their Q4 earnings report and beat expectations – key points are highlighted below:

  • Successfully secured more capacity for 2021 as compared to the level of Q4 2020, when we reached the recent peak quarterly shipment.
  • FY annual 2020 revenues increased to $887.3M, next year this company will generate over $1.2Billion(remember Market Cap only $2.0B)
  • Strong momentum across all major business segments in Q4. TV, monitor, automotive(thanks to EV) driver ICs and CMOS image sensor, large driver ICs, 23.3% of revenues, up 15.2% QoQ; small and medium-sized driver ICs, 64.5% of revenues, up
  • Q4 Driver IC revenues for automotive up 32.4% QoQ as car makers resumed,

Analyst Ratings

Credit Suisse analyst Jerry Su raised the price target on Himax Technologies (NASDAQ: HIMX) to $17.00 (from $11.50) while maintaining a Outperform rating.

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read-time
1 min

13.82

Target Price

6/ 10

Confidence

2-6 Months

Timeframe
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