Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

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

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

<ul>
<li>Automotive display driver IC leader Himax reported 1Q24 results last week that were ahead of guidance. The company also guided for rising margins.</li>
<li>Management believes 1Q24 represents a cyclical bottom for the company's financial performance and expects automotive demand to rise in 2H24E.</li>
<li>Himax rallied but remains 55% below its 2021 highs, yet its market opportunity larger than ever. Himax could be benefitting from different positioning within automotive chips than NXP &amp; Infineon.</li>
</ul>


Automotive display driver IC leader Himax reported 1Q24 results last week that were ahead of guidance. The company also guided for rising margins.
Management believes 1Q24 represents a cyclical bottom for the company's financial performance and expects automotive demand to rise in 2H24E.
Himax rallied but remains 55% below its 2021 highs, yet its market opportunity larger than ever. Himax could be benefitting from different positioning within automotive chips than NXP &amp; Infineon.


Himax: Signs of Automotive Demand Rebound; Why Demand Strength Is Different Than NXP and Infineon

Taiwan Semiconductor (TSMC) - ADR / Equity Bottom-Up

Taiwan Semiconductor Manufacturing Company Ltd. manufactures integrated circuits based on its proprietary designs.  The Company offers a comprehensive set of integrated circuit fabrication processes to manufacture CMOS logic, mixed-mode, volatile and non-volatile memory and BiCMOS chips.  Taiwan Semiconductor is an affiliate of Philips Electronics N.V.

Taiwan Semiconductor (TSMC) - ADR (TSM US)

<ul>
<li>TSMC: Premium Fell and Then Rebounded, Now +15.6%; Can Consider Shorting Again</li>
<li>ASE: Falls to +12.3%; Wait for Higher Level Before Considering a New Short Again</li>
<li>ChipMOS: -0.6% Discount; Massing of Short Interest Right Ahead of Earnings</li>
</ul>


TSMC: Premium Fell and Then Rebounded, Now +15.6%; Can Consider Shorting Again
ASE: Falls to +12.3%; Wait for Higher Level Before Considering a New Short Again
ChipMOS: -0.6% Discount; Massing of Short Interest Right Ahead of Earnings


Taiwan Dual-Listings: TSMC Spread Slumps Then Fully Rebounds; Shorts Spiking Ahead of IMOS Results

Novatek Microelectronics Corp / Equity Bottom-Up

Novatek Microelectronics Corporation designs, manufactures, and markets integrated circuits (ICs).  The Company's products are used in telecommunication, computer peripherals, and LCD (liquid crystal display) drivers.

<ul>
<li>Novatek reported 1Q24 results yesterday after the Taiwan close; gross margin came in ahead of guidance and revenue was in-line.</li>
<li>Nevertheless, the company's forward color regarding end market display applications demand in 2Q24 and 2024 was relatively muted.</li>
<li>Given the stock is at all-time highs and up about 25% since early February, we see the stock at risk of selling in the near-term. We rate Novatek as Underperform.</li>
</ul>


Novatek reported 1Q24 results yesterday after the Taiwan close; gross margin came in ahead of guidance and revenue was in-line.
Nevertheless, the company's forward color regarding end market display applications demand in 2Q24 and 2024 was relatively muted.
Given the stock is at all-time highs and up about 25% since early February, we see the stock at risk of selling in the near-term. We rate Novatek as Underperform.


Novatek Seeing Soft Consumer Electronics Demand; Muted Forward Guidance; Shares Appear at Risk

<ul>
<li>Taiwan Tech Rallies Along With Rebound In Global Tech; Hon Hai, Asustek Top Gainers; KYEC a Top Loser After Announcing China Market Divestment</li>
<li>PC Monitor: The Next Version of MSFT CoPilot Will Be the Killer App for a Global AI PC Upgrade Cycle </li>
<li>ASMedia GDR Early Look - Momentum Has Been Strong, and Raising Would Grow Its Cash Base Almost 6x </li>
</ul>


Taiwan Tech Rallies Along With Rebound In Global Tech; Hon Hai, Asustek Top Gainers; KYEC a Top Loser After Announcing China Market Divestment
PC Monitor: The Next Version of MSFT CoPilot Will Be the Killer App for a Global AI PC Upgrade Cycle 
ASMedia GDR Early Look - Momentum Has Been Strong, and Raising Would Grow Its Cash Base Almost 6x 


Taiwan Tech Weekly: Hon Hai New All-Time Highs; Asustek Soars; Leading Chip Testing Firm Exits China

Silicon Motion Technology / Equity Bottom-Up

Silicon Motion Technology Corporation is a semiconductor company that designs, develops, and markets semiconductor products for the multimedia consumer electronics market. The Company's products include controllers used in mobile storage media and multimedia systems on a chip.

<ul>
<li>Silicon Motion's lQ24 results confirmed the company's end-demand strength as implied by previous Samsung and SK Hynix management commentary re: solid state memory.</li>
<li>Management has increased 2024E guidance, citing rising ASPs and strong demand due to its memory controller products' usage in edge AI applications such as AI PCs and AI smartphones.</li>
<li>The street upgraded target prices across the board after the results; however we note the stock remains below its past acquistion offer price by Maxlinear and we see further upside.</li>
</ul>


Silicon Motion's lQ24 results confirmed the company's end-demand strength as implied by previous Samsung and SK Hynix management commentary re: solid state memory.
Management has increased 2024E guidance, citing rising ASPs and strong demand due to its memory controller products' usage in edge AI applications such as AI PCs and AI smartphones.
The street upgraded target prices across the board after the results; however we note the stock remains below its past acquistion offer price by Maxlinear and we see further upside.


Silicon Motion: Leader in Powerful Niche for Edge AI Memory; Plus Key Wins for Data Center Solution

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