Himax Technologies Inc’s (Himax) ADR has declined significantly since our previous update report, closing at US$4.03 on 24 July 2008. The decline may be attributable to anticipated weakness in the Liquid Crystal Display (LCD) panel market in which the company operates. However, we expect the company’s stable share at Chi Mei Optoelectronics (CMO), a leading panel manufacturer and major customer of Himax, coupled with its significant share in the Small and medium display driver market to support revenue growth in the near future. Given the decline in the ADR price, we believe the stock offer an attractive investment opportunity at current levels and therefore maintain our BUY rating for the Himax ADR. We maintain our current BUY rating for the EDR based on the company’s fundamentals and an anticipated positive currency impact on the European stock in the medium term.

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