Himax Technologies, a fabless semiconductor manufacturer, is a Taiwanese company specializing in display image processing technologies. It is the global market leader in semiconductor products, display drivers and display-related products for televisions, laptops and smartphones. It is also active in the field of optical modules and augmented reality (AR).
When looking at the share, the strong business figures in particular catch the eye. Here, the company reports a return on equity of over 60%, operating cash flow of nearly $400 million, and EBIDTA of approximately $620 million with only $202 million in debt. In addition, Himax has paid a strong dividend this year of 17.3% based on the current share price.
Despite the positive information, the share is rather weak on the chart. Since the last high in early January above $16.00, it has fallen over 60% at times to $6.30 on July 14. One of the reasons for this is a significant decline in profits and sales in the first quarter compared with the final quarter of 2021.
Currently, the country’s conflict with China also poses an increased risk for investing in Taiwanese companies. In the escalating conflict, China is apparently planning a war of aggression against Taiwan, as indicated by maneuvers by the Chinese military off the island. Taiwan, for its part, is preparing with a strong military buildup.
Those considering an investment in the company despite this situation could wait for the resistance at $7.50 to be overcome. After that, further price rises to around $8.50 would be possible. Otherwise, I see price declines to $6.20 as realistic. If the support there is overcome, even prices up to $5.70 would be possible.