A：Company Basic Information
Full Name: Hangzhou Hikvision Digital Technology Co., Ltd.
Stock Code: 002415
Stock Abbreviation: Hikvision
Region: Hangzhou, Zhejiang Province
Industry: Video Surveillance Equipment Industry
Establishment Date: 2001
Founders: Chen Zongnian, Hu Yangzhong, Gong Hongjia
Company Website: http://www.hikvision.com
Registered Address: No. 7006, Dongliu Road, Binjiang District, Hangzhou, Zhejiang Province
Total Share Capital: As of March 31, 2024, the company's total share capital is approximately 9.16 billion shares
Total Market Value: As of the closing on October 18, 2024, the company's total market value is approximately 260 billion yuan
Business Scope: Mainly engaged in the research and development, production, and sales of security video surveillance products, providing intelligent IoT solutions and big data services
Company Profile: Hikvision, established in 2001, is a high-tech enterprise focusing on video surveillance products and solutions. The company, with video technology at its core, has gradually built an intelligent IoT (AIoT) technology system based on perception, artificial intelligence, and big data. It provides security and digitalization products and services for various industries. Hikvision's products and solutions are widely used in smart cities, transportation, energy, education, and other fields, making it a leading enterprise in the domestic security industry.
B：Value Investment Analysis
Key Financial Indicators:
In 2023, the company achieved a total operating income of 89.34 billion yuan, a year-on-year increase of 7.42%;
Achieved an operating profit of 16.04 billion yuan, a year-on-year increase of 8.50%;
Achieved a net profit attributable to shareholders of listed company of 14.11 billion yuan, a year-on-year increase of 9.89%;
Research and development investment was 11.39 billion yuan, a year-on-year increase of 16.1%, with R&D personnel accounting for nearly 50% of the total number of employees.
Company Investment Value:
Hikvision's investment value is mainly reflected in the following aspects:
Technology Innovation: The company continues to increase R&D investment, maintain a technological edge, and promote innovation in products and solutions.
Market Position: Hikvision holds a significant position in the global video surveillance market, with a market share of 25.9% according to Omdia report data in 2023.
Business Diversification: The company not only has a deep accumulation in the security field but also actively expands into innovative businesses such as smart homes and mobile robots, enhancing the company's profitability and risk resistance.
Stable Equity Structure: The company is backed by the state-owned assets supervision and administration commission, with a stable equity structure providing a solid foundation for the company's long-term development.
Company Growth Potential:
Hikvision's growth potential mainly comes from the following aspects:
Rapid Development of Innovative Businesses: The company's innovative business revenue accounted for an increasing proportion year by year, reaching 18.55 billion yuan in 2023, a year-on-year increase of 23.11%, becoming a new engine for the company's growth.
Promotion of Digital Transformation: With the acceleration of digital transformation across various industries, Hikvision is expected to achieve rapid growth in business areas such as smart cities and smart transportation, based on its technological accumulation in the field of intelligent IoT.
International Strategy: The company continues to promote its international strategy, with overseas market revenue accounting for an increasing proportion year by year. Despite the uncertainty of the international political environment, the company's international layout helps to diversify risks and achieve a balanced development of the global market.
Industry Support Policies:
The video surveillance equipment industry, where Hikvision is located, is strongly supported by national policies. From the "Eighth Five-Year Plan" to the "14th Five-Year Plan," the support policies for the video surveillance equipment industry have evolved from abstract to concrete, and from simple to diversified development trajectories. Especially during the "14th Five-Year Plan" period, intelligent surveillance was directly mentioned, requiring the development of intelligent security monitoring and the research and development of intelligent monitoring systems and other industrial control equipment, providing policy support for industry development.
International Policy Risks:
The international policy risks faced by Hikvision mainly come from the uncertainty of the international trade environment, especially the sanctions imposed by the United States on Chinese high-tech companies. The company needs to reduce the impact of international policy risks on its business through diversified market strategies, strengthening independent research and development capabilities, and expanding international cooperation.
A.Top Investment Review:
As a leading enterprise in the global security industry, Hikvision demonstrates good investment value with its technological innovation, market position, business diversification, and other advantages. The company continues to increase R&D investment, promote innovation in products and solutions, and actively expand into innovative businesses and international markets, enhancing the company's profitability and risk resistance. Although facing the challenge of international policy risks, the company is expected to achieve continuous and stable development through robust business strategies and international layout. Considering the company's financial performance, growth potential, and industry development trends, Hikvision is a target worth investing in for the long term.