Managing Director, Zero One, Zero One

Vincent Fernando, CFA

20 years of experience researching capital markets in Asia and the USA.

Managing Director, Zero One

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Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

Equity Bottom-Up

Himax Technologies Inc Adr / Equity Bottom-Up

<ul>
<li>Both Himax and Novatek reported their results last week; both delivered gross margins at the high-end or above their previous guidance.</li>
<li>Both companies showed a continued decline in inventory levels. Himax is trading at one of the cheapest levels relative to Novatek in history.</li>
<li>Novatek sees industry inventory levels as normalized and expects 2024E to be an industry growth year. We rate both stocks as Structural Longs.</li>
</ul>


Both Himax and Novatek reported their results last week; both delivered gross margins at the high-end or above their previous guidance.
Both companies showed a continued decline in inventory levels. Himax is trading at one of the cheapest levels relative to Novatek in history.
Novatek sees industry inventory levels as normalized and expects 2024E to be an industry growth year. We rate both stocks as Structural Longs.


Himax Vs. Novatek Long/Short: Display Industry Inventory Normalized, Growth Expected for 2024E