Hangzhou Hikvision Digital Technology Co Ltd

Hikvision maintains a strong liquidity position with a current ratio of 2.5, indicating the company can cover its short-term liabilities with its short-term assets. However, the company reported negative operating cash flow of -189.64 million CNY, which may signal short-term cash flow constraints. The debt-to-equity ratio of 0.22 suggests a relatively conservative capital structure, with total liabilities significantly lower than total equity.

In terms of profitability, Hikvision's return on equity (ROE) of 4.27% and return on assets (ROA) of 2.46% are below the industry median for Communications & Networking, indicating that the company is underperforming relative to its peers in generating returns for shareholders and asset utilization. The net income of 3.15 billion CNY and operating income of 3.71 billion CNY reflect a healthy profit margin, but the gross profit margin of 43.7% is in line with the industry average.

Hikvision's revenue is primarily concentrated in China, with a significant portion of its business derived from domestic operations. The company has a global presence but remains heavily exposed to the Chinese market, which could pose risks in the event of regulatory or economic shifts. The company's geographic and segment diversification is limited, with no disclosed breakdown of revenue by region or product line in the latest financials.

Looking ahead, Hikvision is expected to maintain a stable revenue trajectory, with analysts forecasting a mean price target of 38.56 CNY per share. The company's capital expenditures of -1.92 billion CNY suggest ongoing investment in infrastructure and operations, which could support long-term growth. However, the negative operating cash flow and net cash position raise concerns about the company's ability to fund these investments without external financing.

The risk assessment indicates a medium liquidity risk and a low dilution risk. The company's net cash is negative after subtracting total debt, which could limit its financial flexibility in the short term. There is no indication of near-term dilution pressure, and the company's capital structure remains relatively stable.

Recent filings and transcripts do not highlight any material events or strategic shifts. The company continues to focus on its core video surveillance business, with no significant new product launches or market expansions disclosed in the latest data.

Hangzhou Hikvision Digital Technology Co Ltd (002415.SZ) has been formally classified within the Technology economic sector, with its primary activity identified as Communications & Networking. This taxonomic update provides a clearer structural definition of the company’s operational focus, aligning its market positioning with the broader technology infrastructure landscape. The risk profile for the company has also been established, with dilution risk assessed as low. This assessment suggests that existing shareholders face minimal threat from equity expansion, a factor that can support valuation stability and investor confidence in the capital structure. Conversely, liquidity risk has been categorized as medium. This designation indicates that while the company is not facing immediate distress, there are moderate considerations regarding the ease of trading its shares or accessing liquid capital, which may influence trading strategies and market depth analysis. These updates are contextualized by the presence of eight analysts covering the stock, as indicated in the company profile. The combination of sector classification and risk assessments offers a foundational framework for these analysts and investors to evaluate Hikvision’s performance within the Communications & Networking segment.

Analysts project 16.4% upside to a mean price target of 38.56 CNY, reflecting strong market confidence in the stock.

Operating and net margins of 15.9% and 13.5% significantly exceed the 75th percentile of the Communications & Networking cohort.

Free cash flow surged 106.7% year-over-year to 3.5 billion CNY in FY2026, demonstrating robust cash generation capabilities.

Revenue reached 92.5 billion CNY in FY2026, maintaining stability despite a modest 3.2% four-year compound annual growth rate.

Return on equity of 4.27% outperforms the cohort median of 1.18%, indicating superior capital efficiency relative to peers.

The company faces high credit risk, signaling potential difficulties in debt servicing or broader financial stability concerns.

Net income declined at a 4.1% annual rate over four years, indicating a persistent downward trend in profitability.

Long-term debt increased to 18.3 billion CNY in FY2024 before declining, highlighting a period of significant leverage expansion.

Medium liquidity risk flags potential challenges in meeting short-term obligations, adding uncertainty to the financial profile.

Revenue ¥20.72B, +11,8% YoY; Operating income +46,1% YoY.

• ▍Revenue ¥20.72B, +11,8% YoY
• ▍Operating income +46,1% YoY
• ▍Net income +36,4% YoY
• ▍Net margin 13.4%

Revenue ¥26.75B, −2,7% YoY; Operating income +27,4% YoY.

• ▍Revenue ¥26.75B, −2,7% YoY
• ▍Operating income +27,4% YoY
• ▍Net income +26,0% YoY
• ▍Net margin 18.2%

Revenue ¥23.94B, +0,7% YoY; Operating income +19,8% YoY.

• ▍Revenue ¥23.94B, +0,7% YoY
• ▍Operating income +19,8% YoY
• ▍Net income +20,3% YoY
• ▍Net margin 15.3%

Revenue ¥23.29B, −0,5% YoY; Operating income +17,9% YoY.

• ▍Revenue ¥23.29B, −0,5% YoY
• ▍Operating income +17,9% YoY
• ▍Net income +14,9% YoY
• ▍Net margin 15.5%

Revenue ¥18.53B; Operating income ¥2.64B.

• ▍Revenue ¥18.53B
• ▍Operating income ¥2.64B
• ▍Net margin 11.0%

Revenue ¥27.50B; Operating income ¥4.19B.

• ▍Revenue ¥27.50B
• ▍Operating income ¥4.19B
• ▍Net margin 14.1%

Revenue ¥23.78B; Operating income ¥3.84B.

• ▍Revenue ¥23.78B
• ▍Operating income ¥3.84B
• ▍Net margin 12.8%

Revenue ¥23.39B; Operating income ¥3.71B.

• ▍Revenue ¥23.39B
• ▍Operating income ¥3.71B
• ▍Net margin 13.5%

Revenue ¥92.51B, +0,0% YoY; Operating income +18,5% YoY.

• ▍Revenue ¥92.51B, +0,0% YoY
• ▍Operating income +18,5% YoY
• ▍Net income +18,5% YoY
• ▍Free cash flow +106,7% YoY
• ▍Net margin 15.3%

Revenue ¥92.50B, +3,5% YoY; Operating income −10,8% YoY.

• ▍Revenue ¥92.50B, +3,5% YoY
• ▍Operating income −10,8% YoY
• ▍Net income −15,1% YoY
• ▍Free cash flow −71,4% YoY
• ▍Net margin 12.9%

Revenue ¥89.34B, +7,4% YoY; Operating income +8,5% YoY.

• ▍Revenue ¥89.34B, +7,4% YoY
• ▍Operating income +8,5% YoY
• ▍Net income +9,9% YoY
• ▍Free cash flow +155,5% YoY
• ▍Net margin 15.8%

Revenue ¥83.17B, +2,1% YoY; Operating income −20,0% YoY.

• ▍Revenue ¥83.17B, +2,1% YoY
• ▍Operating income −20,0% YoY
• ▍Net income −23,6% YoY
• ▍Free cash flow −69,4% YoY
• ▍Net margin 15.4%