Hikvision President Buys ~$100 Million USD Hikvision Stock

By: John Honovich, Published on Mar 03, 2016

Hikvision's President is proving to be a loyal communist party member. 

China, facing its toughest economic challenges in years, has been rocked by falling stock prices and capital fleeing the country. But Hikvision's President is doing his part to hold things up. In this note, we examine the recent move and the key Chinese events surrounding it.

*********'* ********* ** ******* to ** * ************** ***** ******. 

*****, ****** *** ******** economic ********** ** *****, has **** ****** ** ******* stock ****** *** ******* fleeing *** *******. *** Hikvision's ********* ** ***** his **** ** **** things **. ** **** note, ** ******* *** recent **** *** *** key ******* ****** *********** it.

[***************]

Falling ***** ******

*** ******* ***** ****** has *** * **** ride **** *** **** year, ********* ** *** first **** ** ****, followed ** ******* ** the ****** *** **** again ** *** ********* of ****, ** *** Shenzhen ***** ***** *** the **** ** ****** shows:

**** *** ****** ***** anxiety ****** *** ******* government, ** ******* ***** prices ****** ***** *** regular ******* ********* ** the ****** ** **** as *** *** ******* government, *** ** *** primary ***** ** **** ** companies ** *** ******** (**** *********). 

Tightening ******* ********

** ****, ******** ~$* ******** ***** ******* ******** **** from *****. *** ** the *** ******* ** fear ** ****** ******* currency *********** (*.*., ** Chinese ******** ** ********, people ******* ** **** lose),******* **** ******* ** get ***** ***** ***** *****.

** ******* ****, ***** is********** ******* *********** ****** ** ****** for ******* ** *** their ***** ***.

Slowing ******* *******

**** *** ******* ********** is ************* *** ******* economy, ***** ** ** years [**** ** ****** available], **** ** *** underlying ******* ********* *** stock ****** *** *********** trying ** *** ***** out.

Execs ****** ** ********** **** ******* ******

*** ********* *** ******* government *** **** ** stop ******* ******** ** banning ** *********** [**** no ****** *********] ******** traded ********** (**** *********) from ******* ******. ** is * ****** ********* and ****-****** ******** *** it ********* ***** ** reduce ******** ****** ** stock ******.

Hikvision ********* ****** ~$*** ******* *** ******

*** **** ** *********'* President, Hu *********, *** *******, ***** ****** ~** ******* Hikvision ********* * ***** ** ~$100 ******* **** *** past *****. **** ** ~0.5% ** *********'* ***** valuation ** ~$** ******* USD.

** ** *** ***** to ** *** **** shares ** ****** ** has ****** ****, *** he *** *** ****** in *** *** ** shareholders ** ********* ***** to ****. ** ********, the ******* ********** *********** listed ** *********'* **** Chair ******** *** **** ~18% ********* (~*.* ******* USD).

**** *** ******, ** at ***** ********* **** the ***** ********** **** the ******:

**** ****, *** ***** is ***** ***** **, where ** ****** ** 50+ **** ****.

********************?

*** ** *** ******* executives *** ***** ****** is **** **** **** their ********* *** ***********.

****** ********* ***** *** a ***** **** *********, it **** ****** *********** profitability. ********* **** ******* was ~$*.* ******* *** compared ** *** ******* market ********* ** ~$**.* billion ***, *** * price ** ***** ***** of *.*. *******, *** company *** ******** ~$* billion *** ** ******* in **** ** * net ****** ** ~**%.

*** *** ******* *** Hikvision's ********* ** ***** decelerating ******* *** *******. Ultimately, ** ******* ** how **** *** *** much ***** *** *******.

Politically ****** ****

**********, ** ******* *** move *** **** ** do **** ****** ***** in *** ***** ****** that ********* ******* ** Hikvision's ********** ***** / key ********. ** **** end, ** ***** ** is * ****** **** that **** ******** ***** commitment ** ***** **** market / *****.

Comments (8)

Undisclosed Integrator #1

03/03/16 02:49pm
With world domination in their sights it would seem a good time to follow Hu's lead and buy some Hikvision shares...

John Honovich

IPVM | In reply to Undisclosed Integrator #1 | 03/03/16 03:17pm

Those are 'A' shares so unless you are a Chinese citizen or have access to a QFII, it will be hard / impossible to do.

Undisclosed #2

03/03/16 02:59pm

It is not clear to us how much shares or wealth Hu has before this...

In 2013 he was making ends meet with an estimated worth of $620 million.

John Honovich

IPVM | In reply to Undisclosed #2 | 03/03/16 03:20pm

The 2015 Hurun list has him at $580 million though unclear how much of that is in or out of Hikvision stock (evidently it is ~$100 million less than a month ago).

Paul Galburt

03/03/16 07:40pm

Is there any particular explanation for the "decreasing revenues" mentioned for Hikvision?

John Honovich

IPVM | In reply to Paul Galburt | 03/03/16 11:16pm

The quote was not 'decreasing revenue', it was 'decelerating revenue', covered here Hikvision Growth Rate and Profits Falling. The main reason appears to be the Chinese domestic market which still accounts for the vast majority of Hikvision's market.

Undisclosed Manufacturer #3

03/04/16 02:49am

With a new round of "revolution" and "construction" in China by government to boost GDP, you can image Hikvision's revenue will be protected by government purchasing power.

Mr. Hu , has done the right thing at the right time, and he got both good fame and possible high ROI by doing this stock purchase.

Even if the GDP cannot go high, as you know, the sales number of Hikvision will unlikely to be bad in the coming year.

John Honovich

IPVM | In reply to Undisclosed Manufacturer #3 | 03/04/16 08:43am

"With a new round of "revolution" and "construction" in China by government to boost GDP, you can image Hikvision's revenue will be protected by government purchasing power."

It looks that way. The key question becomes how much longer and at what levels this amount of construction / investment / debt can continue, with debt at increasingly alarming levels and far higher than economic growth.

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