on the Himax website as this will be their investor’s presentation.
Especially pay attention to page 7 where they list their products and show customer logos. Of note are these changes from their November 2012 presentation:
• New Product category of LOCS and MEMS Microdisplays which are the head mounted displays and micro-projectors. These have the potential to make smartphones wrist watches and mitigate the screen size war. The customer here is NDA
• New customer Sony appears under CMOS Image Sensor with FSI/BSI Technologies
o Existing customers ASUS and Coolpad also appear under this but did not before (but exist in other categories)
• New customers Microsoft and Epson appear under ASIC Media Processor & IP
• New customer Gioneer (with Asian characters) appears under Touch Panel Controller IC
o Existing customers ASUS also appears under this but did not before (but exist in other categories)
So, it is easy to see why HIMX is excited about 2013 but are conservative with their 1Q 2013 guidance as it includes the week long Chinese New Year holiday.
Go to the HIMAX site and download the presentation for yourself. This price weakness is a gift which I am taking advantage of by buying. See you all at double the price in 2 years.
I didn't realize all of this new stuff you pointed out. I just know that they are very prosperous already and with a % year projected growth rate (PEG) of only .52 means they are already way undervalued. So what you pointed out, it won't take two years to double I would say by mid summer to early 1st Q of next year. If that sounds like a pump, thats cuz it is but also true.
My point in going back to see these differences is to help me place confidence in what the analysts are projecting. I want to be more comfortable with why and how their revenues and earnings are going to increase and not just trust some analyst at face value. I do think some analysts know more than me. But, if I can understand why they are increasing or decreasting revenue, I am a better investor.
One other thing I would suggest to add validity to investing in HIMX is to look at the changes in institutional investors. In the latest reporting period (quarterly so it was 12/31/2012), there was almost 3 millions share purchased by existing and new institutional investors but less than 1 millions shares sold by institutional investors.
This would seem to be bullish knowing that those buying do so ONLY to make money while those selling sell for many reasons.
Besides customers, there are also these substantive changes in the Investor’s presentation slides:
• Slide 5 added timing controllers and ASIC solutions to the Company Overview
• Added page #12 and comments just on 2012 with focus on “successful turnaround from trough of 2011”
• Also added “S/M panel driver IC to become largest source of sales…………experienced double digit growth......”
• Added “Non-driver products delivered strongest growth owning to many new product launches and wins”
• Slide 15 added “Non-related parties revenue increased $110.5 million and 29.5% YoY in 2012”
• Slide 16 “Committed to paying annual dividends referenced primarily on prior year’s profitability”
• Slide 19 “Key differentiation from IC Peers is Himax offers total solution of image processing related technologies and leverage of existing strength in mobile devices”
• Slide 20 “Leading position to be solidified due to higher resolution industry trend”
• Slide 22 “Expect sales to surge in 2013 because of shipments of new products”
• Slide 22 “Expect to gain new leading smartphone brand customers and penetrate tablet, IP Cam, surveillance and automotive application markets”
• Slide 23 “Sales in 2012 more than tripled due to share expansion in existing leading smartphone brand customer and new shipments to China handset customers from 3Q12”
• Slide 24 “Working with numerous partners to create new pico-projector applications”