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)

With world domination in their sights it would seem a good time to follow Hu's lead and buy some Hikvision shares...

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

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.

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).

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

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.

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.

"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.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Dahua CEO Is Out on Feb 28, 2020
Dahua CEO Li Ke has resigned less than 3 years after he was brought in from Huawei to professionalize management. Inside this note, we examine...
NetPosa Revenue Plunges 90% on Nov 04, 2019
Revenue for China's long-time largest VMS provider NetPosa plunged 90% in the latest quarter, adding to the firm's serious financial...
Resideo Stock Plunges 37%, CFO Ousted on Oct 23, 2019
The horrible year for the ADI / Honeywell Home spinout, Resideo, just got worse, with their stock plunging another 37% today. Not even a year...
Crisis At China's Largest VMS Provider, Netposa, Now State-Controlled on Oct 07, 2019
NetPosa, which bills itself as the PRC's largest VMS provider, is in a crisis. The firm is pursuing huge unpaid bills from clients, and its...
Megvii Financials and Growth Examined on Aug 30, 2019
Megvii has already received more than a billion dollars in investment. Now, the company, a top China facial recognition provider, has filed for an...
In China, Foreign AI Companies Banned or Disadvantaged, Says Top China AI Company on Aug 28, 2019
Non-China (PRC) companies are prejudiced and unfairly targeted inside of the PRC's booming AI market, which not only denies them revenue inside of...
Stanley Makes "Multi-Million Dollar Investment" Into Banned Hikvision Products on Aug 09, 2019
Just days from the US government ban going into effect, US mega-corporation Stanley has dramatically increased its imports of banned Hikvision...
RaySharp Revealed - Major China OEM For Western Consumer Video Surveillance on Jul 02, 2019
RaySharp is mostly unknown, even among people in the video surveillance industry, though it is a major supplier of OEM surveillance equipment such...
Hikvision USA Giving Free Cameras In Biggest Flash Sale on Jun 26, 2019
Hikvision redefined sales promotions in the US video surveillance market, starting at the end of 2015, with across the board discounts. Now,...
Hikvision Admits USA Sales Falling on Apr 22, 2019
Hikvision, in a new Chinese financial filing, has admitted that its USA sales are now falling. Less than a year after the US government passed a...

Most Recent Industry Reports

FLIR New Coronavirus Prioritized Temperature Screening Camera Examined on Apr 03, 2020
FLIR has announced a new series of thermal cameras "prioritized for entities working to mitigate the spread of COVID-19 virus", the A400/A700...
ADI Branch Burglary on Apr 03, 2020
A security systems distributor branch is an odd target for burglary but that happened this week at ADI's Memphis location. Vehicle Smash &...
YCombinator AI Startup Visual One Tested on Apr 02, 2020
Startup Visual One, backed by Silicon Valley's powerful Y Combinator, aims to be "Your 24/7 Watchman" with advanced analytics and object...
Free IPVM Memberships For The Unemployed on Apr 02, 2020
IPVM is giving 3-month free memberships (regular price $99) for the unemployed, no questions asked. To get it, just contact us, your request...
Dahua Faked Coronavirus Camera Marketing on Apr 01, 2020
Dahua has conducted a coronavirus camera global marketing campaign centered around a faked detection. Now, Dahua has expanded this to the USA,...
Video Surveillance Trends 101 on Apr 01, 2020
This report examines major industry factors and how they could impact video surveillance in the next 5 - 10 years. This is part of our Video...
USA's Seek Scan Thermal Temperature System Examined on Apr 01, 2020
This US company, Seek, located down the road from FLIR and founded by former FLIR employees is offering a thermal temperature system for the...
Terrible Convergint Coronavirus Thermal Camera Recommendation on Apr 01, 2020
A week after Convergint disclosed falling revenue, pay and job cuts, Convergint is touting 'extensive research' that is either grossly incompetent...
The IPVM New Products Online Show April 2020 Opens With 40+ Manufacturers on Mar 31, 2020
IPVM is excited to announce the first New Products Online show, with 40+ manufacturers, to be held April 14 to the 16th, free to IPVM members,...