Himax Technologies, Inc (ADR) (NASDAQ:HIMX) has announced the appointment of JPMorgan Chase Bank as the company’s new American Depository Receipt (ADR) Bank. The new changes will take effect today where Himax’s ADR program is supposed to be transferred officially to the JPMorgan Chase Bank, N.A.
While there were high hopes that 3D sensing will uplift Himax Technologies, which is drastically falling behind its rivals, it has apparently been revealed that the company is dropping its edge on various levels. According to Oppenheimer analyst Andrew Uerkwitz, there are several areas that are bringing the company to its knees which include; the new display designs, the extreme changes in the China mobile market, and the expansion of the 3D sensing system.
Uerkwitz supposes that these aspects among other issues are the means of projecting mid-term expectations. In the middle of these problems, Uerkwitz views the cause of downgrade of the company stock from high Performance to Underperformance rating and at the same time initiating a new price mark of $4, which signifies a 50% downside from the existing levels.
Again, as the touch and display integration (TDDI) market continues to shift to 18:9 screens with a projected penetration of about 38% by 2018, the Jimax Technologies would be lagging behind its rivals in winning new designs. At the same time, other companies including the Synaptics, FocalTech, and Novatek would be leading in most TDDI markets.
In addition, since OLED panel shipments are predicted to reach 60% growth by end of 2017 with a 50% penetration by 2020, it would be hard for Himax Technologies to win in the OLED business. It’s also emphasized that the 3D sensing, which has been the Himax’s silver lining for quite some time, will also face stiff competition in the near future.
Though 3D has the potential to grow, Himax does not have strong technology lead and may not boost the company’s spot on the market. Himax has remained a leading producer and supplier of display drivers and other semiconductor merchandises, but the current situation is too difficult to ignore.
