Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Equity Bottom-Up

Himax Technologies Inc Adr / Equity Bottom-Up

<ul>
<li>We spoke with management of Himax, the global leader in chips powering displays inside automotives including EVs. Its sales have been badly impacted by China's EV price war.</li>
<li>Himax sales have fallen recently largely due to China demand weakness; 70% of the company's sales are in China.</li>
<li>Himax has underperformed peer Novatek as well as the TWSE both YTD and on a 1-year basis. We believe the less-followed stock could represent an opportunity for investors.</li>
</ul>


We spoke with management of Himax, the global leader in chips powering displays inside automotives including EVs. Its sales have been badly impacted by China's EV price war.
Himax sales have fallen recently largely due to China demand weakness; 70% of the company's sales are in China.
Himax has underperformed peer Novatek as well as the TWSE both YTD and on a 1-year basis. We believe the less-followed stock could represent an opportunity for investors.


Himax Technologies: Contrarian Play on a Automotive Display Semiconductor Leader

Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Independent, Fundamental Quantitative Research

Propitious Research

Fully independent, fundamental and quantitative equity research, focused on companies in the Telecommunication, Media, Technology, Internet and Healthcare sectors in the Global Emerging Markets. Idea generation focused on Quality stocks, trading below their intrinsic Value, with sound Corporate Governance.

<p><a href="https://www.smartkarma.com/entities/parade-technologies-ltd" target="_blank" data-smartkarma-citation="entities:6987:1" rel="noopener">Parade Technologies (4966 TT)</a> is a high-speed mixed-signal fabless semiconductor company that designs, develops, and sells next-generation high-speed interface, display and touch solutions for computing, consumer, and handset markets. </p>
<p>This is a high-quality tech company, with significant revenue growth and earnings momentum, generating returns well above its cost of capital, a net cash balance sheet, and an attractive sustainable 2%+ dividend yield. </p>
<p>Although current valuation levels are above historical average levels, and fair at best, further revenue growth expectation upgrades coupled with fair gross margin expansion forecasts, and a management team confident of having secured sufficient manufacturing capacity to address exceptionally strong end-product demand, makes the continuation of the earnings upgrade cycle seem probable, which in turn should continue to be a positive share price catalyst. Parade Technologies is also expected to see large passive inflows during November 2021 following the MSCI November 2021 Semi-Annual Index Review.</p>

Parade Technologies (4966 TT) is a high-speed mixed-signal fabless semiconductor company that designs, develops, and sells next-generation high-speed interface, display and touch solutions for computing, consumer, and handset markets. 
This is a high-quality tech company, with significant revenue growth and earnings momentum, generating returns well above its cost of capital, a net cash balance sheet, and an attractive sustainable 2%+ dividend yield. 
Although current valuation levels are above historical average levels, and fair at best, further revenue growth expectation upgrades coupled with fair gross margin expansion forecasts, and a management team confident of having secured sufficient manufacturing capacity to address exceptionally strong end-product demand, makes the continuation of the earnings upgrade cycle seem probable, which in turn should continue to be a positive share price catalyst. Parade Technologies is also expected to see large passive inflows during November 2021 following the MSCI November 2021 Semi-Annual Index Review.

Parade Technologies: Further Revenue Growth Upgrades, and Dividends, Should Support Valuation

Asia and Global Semiconductor and Tech Research

Andrew Lu

<h2>How can Apple guide stronger 4Q17 on back of iPhone X production delay?</h2><p>After <a href="https://www.smartkarma.com/entities/666" target="_blank" data-smartkarma-citation="entities:666:1">Apple Inc (AAPL US)</a> reports 4% stronger 3Q17 sales than Bloomberg consensus estimates and earlier guidance to US$52.6bn (up 16% q/q and 12% y/y) with US$0.2 or 11% higher in 3Q EPS, Apple guides 4Q sales of US$84-87bn, up 60-65% q/q and 7-11% y/y, implying no clear sign of iPhone X production delay (cut to 20mn for 2017 from 40mn) to and no sign of iPhone 8/8 plus 50% demand related production cut than some news and…</p>

How can Apple guide stronger 4Q17 on back of iPhone X production delay?After Apple Inc (AAPL US) reports 4% stronger 3Q17 sales than Bloomberg consensus estimates and earlier guidance to US$52.6bn (up 16% q/q and 12% y/y) with US$0.2 or 11% higher in 3Q EPS, Apple guides 4Q sales of US$84-87bn, up 60-65% q/q and 7-11% y/y, implying no clear sign of iPhone X production delay (cut to 20mn for 2017 from 40mn) to and no sign of iPhone 8/8 plus 50% demand related production cut than some news and…

How Can Apple Guide Stronger 4Q17 on Back of IPhone X Production Delay?

Advanced Semiconductor Engr / Equity Bottom-Up

<h2>Fingerprint SiP is replaced by face ID</h2><p>By factoring in the following guidance from <a href="https://www.smartkarma.com/entities/721" target="_blank" data-smartkarma-citation="entities:721:1">Advanced Semiconductor Engr (2311 TT)</a> , we estimate ASE trying to guide below seasonal 4Q sales growth of 0% q/q at a gross margin of 18%, which is 8% below Bloomberg consensus' sales estimates. We thus expect analysts to cut their 3Q17 EPS estimates to NT$0.60-0.70 level from NT$0.79 now. This is in line with our earlier concerns that ASE's fingerprint system in packaging (SiP) business in weaker demand iPhone 8…</p>

Fingerprint SiP is replaced by face IDBy factoring in the following guidance from Advanced Semiconductor Engr (2311 TT) , we estimate ASE trying to guide below seasonal 4Q sales growth of 0% q/q at a gross margin of 18%, which is 8% below Bloomberg consensus' sales estimates. We thus expect analysts to cut their 3Q17 EPS estimates to NT$0.60-0.70 level from NT$0.79 now. This is in line with our earlier concerns that ASE's fingerprint system in packaging (SiP) business in weaker demand iPhone 8…

ASE Guides Below Seasonal 4Q17; Fingerprint SiP Is Replaced by Face ID

<h2>Visit an Apple Face ID and Android platform 3D sensing component vendor</h2><p>This morning, we have visited a key <a href="https://www.smartkarma.com/entities/666" target="_blank" data-smartkarma-citation="entities:666:1">Apple Inc (AAPL US)</a> Face ID and Android platform 3D sensing component vendor, which provides a wafer level optical component or a turnkey solution for smartphone customer. During the visit, we are confirmed by the company recent production delay of iPhone X and have some interesting findings. We later will show Q&amp;A format and our implications on the "I". To avoid some issues with its supply…</p>

Visit an Apple Face ID and Android platform 3D sensing component vendorThis morning, we have visited a key Apple Inc (AAPL US) Face ID and Android platform 3D sensing component vendor, which provides a wafer level optical component or a turnkey solution for smartphone customer. During the visit, we are confirmed by the company recent production delay of iPhone X and have some interesting findings. We later will show Q&amp;A format and our implications on the "I". To avoid some issues with its supply…

Visit a Face ID and 3D Sensing Component Vendor; Interesting Findings

Taiwan

Himax Technologies, Inc. designs and manufactures integrated circuits.  The Company produces liquid crystal displays (LCD).

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Himax Technologies Inc Adr (HIMX US)

Himax Technologies: Contrarian Play on a Automotive Display Semiconductor Leader

Himax has underperformed peer Novatek as well as the TWSE both YTD and on a 1-year basis. We believe the less-followed stock could represent an...

Vincent Fernando, CFA

Parade Technologies: Further Revenue Growth Upgrades, and Dividends, Should Support Valuation

In this insight, I take a deep-dive analysis into fabless IC design house, Parade Technologies, its industry value chain, current valuation levels,...

Wium Malan, CFA

How Can Apple Guide Stronger 4Q17 on Back of IPhone X Production Delay?

How can Apple guide stronger 4Q17 on back of iPhone X production delay?After Apple Inc (AAPL US) reports 4% stronger 3Q17 sales than Bloomberg...

Andrew Lu

ASE Guides Below Seasonal 4Q17; Fingerprint SiP Is Replaced by Face ID

Fingerprint SiP is replaced by face IDBy factoring in the following guidance from Advanced Semiconductor Engr (2311 TT) , we estimate ASE trying to...

Andrew Lu

Visit a Face ID and 3D Sensing Component Vendor; Interesting Findings

Visit an Apple Face ID and Android platform 3D sensing component vendorThis morning, we have visited a key Apple Inc (AAPL US) Face ID and Android...

Andrew Lu

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