Hikvision Stock Down 50%+ From 2015 Peak

Author: John Honovich, Published on Jan 26, 2016

While Hikvision is busy preparing for world domination, it faces increasing challenges at home in China. Last week, Hikvision announced weakened profits. Now the company's stock continues to fall, down over 8% today and more than 50% from its peak in mid-2015.

In this note, we examine Hikvision's stock rise and fall, analyzing its impact to the global video surveillance industry.

***** ********* ** **** ********* ******** **********, ** ***** ********** ********** ** **** ** *****. **** week,********* ********* ******** *******. *** *** *******'* ***** ********* ** ****, **** **** 8% ***** *** **** **** **% **** *** **** ** mid-2015.

** **** ****, ** ******* *********'* ***** **** *** ****, analyzing *** ****** ** *** ****** ***** ************ ********.

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

****

** *** **** **** ****, *********'* ****** ************** *** ~$** billion ***, ******* ** ** ********** *** ******* ********* *** having * ****** ********* ******* ***** ** *** **** ** the ****** ***** ************ ******** ********.

****

**** * ****** ***, *********'* ***** *** ****** ~**% **** 52.30 **** ** **.** *****.

***** ***** *** * ***** **** ** *** ***** ******, with ******* ******* ******** ** *** **** * ******.

****: *** ******* ********** ********* ******* ** *********'* ****** *** 2 ****** ** **** ** *********** ** *** **** **** in *** ****** ** *** *****.

China ***** **** ******

********* ** *** ***** ****. *** ******* ***** ****** *** swung ****** **** *** **** ****.

**** ** *********'* ***** ***** ***** **** ******* (****):

*** **** *** ** *** ***** **** ** ****, **** Hikvision's ***** ***** *** ***** ***** **** **** **** *******, despite ******* **** ******* ****** ** ~**%.

Fears ** *** ******* *******

*** **** ******* ** *** ****** ** *** ******* *******. As ***** *********** ******, **** *** *** ******* ****** ** ** *****. ** the ***** ****, ***** ********** **** ****** ** ***** ********* high ** ***** ********* (* ******** *.*%) *** **** **** are *********** ******** *********** ** * '*** ******'. ** *** **** ** ***** ****** ****, **** ************ ** *****'* ********** / *** *******.

Government ********** ********** ***** ******

*** ******* ********** *** **** ******* *** ** ****** / hold ** ***** ******,*********** ******* ************** **** ****** ** ***** *** *********, ****** ****** ********** (the '******** ****'),*********** ***** *******, *** ****** ******* ******* ****** '******* ********', ***.

*************, ***** ******* **** *** **** ******* *** ** ** unclear ** **** ***** / ***** ***** *** ******* ********** can ********* *** ****.

Hikvision ******

* ******* ***** ***** *** **** ********, **** ************, ** raising ******* ****** (*.*., *** ************ ********* **** **** ***), to ******* *********.

*** ****** ******* ** ******** ****** *********'* **** ***** ******, partly **** **** ******** / ********* ****** *** ** ******* stock ****** *** **** *** **** ** *** '*** ******' economy ******* **** ** *********** *** **** ************** ******** ***** 2008 **** *** ********* ********* ** ** *** ******* ***** surveillance ******* ** *** *****. *****'* ********** *** **** ** clear **** **** ********* ** **** ** * ********, ****** **** ********** ****** *******, *** *** *** ***** goes ***** ************* ****** *********'* **** ****** / ****** *********.

Further ****?

**** ***** *** ***** ****, *********'* ****** ************** ** ***** ~$15 ******* ***, ~** ***** **** *****. ** **** ******** to **** ** **%+ *** ******** **% *** *******, *********'* stock ** ** ******** *****.

** *** ***** ****, **** ***** **** **** **** **** sales ~**%. ** ********* ***** **** ** **** ***** *** their ****** ******* ******* (*** ** * ******* ******* ****** and *** ********** ** ******* *********), *********'* ***** ***** ***** easily **** *** ******* ** ~** ***** ********* ** ***** fairly ****.

**********, ******, ** **** ** *********'* ****** ***** ** *** fate ** *** ******* ********** / ******* *** ** ******* to ** **** ******* ** ***** * '****** *******', '**** *******' ** '***** *******'.

Comments (10)

Excellent info, thanks as always!

I can't help but notice the linear section of the charts from Jul '15 to Sep '15. What happened there? Seems like a 2 month gap in data.

Frank, good question. I found another source that had data during that time frame. Those 2 months the stock seemed to bounce up and down slightly but no major shifts. The 2 big downturns were late summer and now this winter.

What was the other source?

Goldman says that trading was suspended for two months.

Made me look. ;-)

Hikvision closed at 32.39 on Jul 8 and 33.26 on Sep 9. There was zero volume from Jul 9 to Sep 8.

Yahoo's chart shows a flat line from Jul 8 to Sep 8 and a one day jump from Sep 8 to Sep 9, which seems most realistic (zero volume = no change).

Bloomberg's chart shows a straight line from Jul 8 to Sep 9 which is sort of okay_ it just does not chart all the zero volume days.

Google's chart completely eliminates the days from Jul 9 to Sep 8! Really, Google? It's like they never happened. The really misleading thing is that the dates at the bottom show 8 then 9 so they look like a normal sequence of dates but if you hover over the dates the 8 is Jul 8 and the 9 is Sep 9. OMG!!!

The really misleading thing is that the dates at the bottom show 8 then 9 so they look like a normal sequence of dates but if you hover over the dates the 8 is Jul 8 and the 9 is Sep 9.

Good catch, Frank! Mystery solved.

I am stunned that they stop trading for two months and I am disappointed in myself for missing that.

Quite a free market they have to stop a stock's trading for 2 months...

Also, from the Goldman post, so much for a free and independent Hikvision: "It has been challenging for SOEs [state owned enterprises] to put forward such partnership share incentive schemes, and it took longer than Hikvision expected to get approval from its parent SOE company and SASAC. "

Yeah, I missed it too, and totally agree.

The market is crashing_ we'll just suspend trading for 2 months... wow.

China and state-sponsored capitalism definitely were not covered when I got my Economics degree. What is happening today is redefining things and will eventually be covered in textbooks (or whatever they will be using in the future). Adam Smith's brain would be exploding right now.

While the US does not have a totally free market either (the Fed has way too much influence to say otherwise), China takes things to a whole new level. There are plenty of examples in the western world that demonstrate that free market and free enterprise are not always the case (AirBus and GM come to mind) but nothing like what China is doing.

Quite a free market they have to stop a stock's trading for 2 months...

I'm amazed that it 'worked' at all. Came right back where it left off.

I know this was mainly due to the government propping up everything, but regardless, from Hik's standpoint it paid off.

If it had slid another points before halting, that's probably where it would have come back at...

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

Intersec 2019 Live From Dubai Day 2 on Jan 22, 2019
There’s a massive presence from Chinese or China-focused video surveillance firms, chiefly Hikvision, Dahua, Huawei, and Infinova, at...
Milestone Favorability Results 2019 on Jan 21, 2019
Milestone's favorability moderately strengthed, in new IPVM integrator statistics over their results from 2016. While the industry has been...
NYPD Refutes False SCMP Hikvision Story on Jan 18, 2019
The NYPD has refuted the SCMP Hikvision story, the Voice of America has reported. On January 11, 2018, the SCMP alleged that the NYPD was using...
Mobile Surveillance Trailers Guide on Jan 17, 2019
Putting cameras in a place for temporary surveillance where power and communications are not readily available can be complicated and expensive....
Avigilon Favorability Results 2019 on Jan 15, 2019
Since IPVM's 2017 Avigilon favorability results, the company was acquired by Motorola and has shifted from being an aggressive startup to a more...
Gorilla Technology AI Provider, Raises $15 Million, Profiled on Jan 15, 2019
Gorilla Technology is a Taiwanese video analytics manufacturer that recently announced a $15 million investment from SBI Group, saying this...
Arecont Costar Layoffs on Jan 14, 2019
Arecont Vision, a Costar Company, has laid off more than 10% of their workforce in a move the company described to IPVM as a result of "important...
The False SCMP Story on Hikvision NYC AI on Jan 14, 2019
In the past week, one of Asia's largest publications, the South China Morning Post (SCMP), posted an article about "Chinese [facial recognition]...
2019 Video Surveillance Cameras Overview on Jan 07, 2019
Each year, IPVM summarizes the main advances and changes for video surveillance cameras, based on our industry-leading testing and...
Infinova Deletes Xinjiang References, Hiding Evidence on Jan 07, 2019
Infinova has deleted all posts about Xinjiang on its website due to IPVM’s investigation of its business ties there and successfully directed...

Most Recent Industry Reports

Cable Trenching for Surveillance on Jan 21, 2019
Trenching cable for surveillance is surprisingly complex. While using shovels, picks, and hoes is not advanced technology, the proper planning,...
Milestone Favorability Results 2019 on Jan 21, 2019
Milestone's favorability moderately strengthed, in new IPVM integrator statistics over their results from 2016. While the industry has been...
Intersec 2019 Live Day 1 - Massive China Presence on Jan 21, 2019
There’s a massive presence from Chinese or China-focused video surveillance firms, chiefly Hikvision, Dahua, Huawei, and Infinova, at...
The IP Camera Lock-In Trend: Meraki and Verkada on Jan 18, 2019
Open systems and interoperability have not only been big buzzwords over the past decade, but they have also become core features of video...
NYPD Refutes False SCMP Hikvision Story on Jan 18, 2019
The NYPD has refuted the SCMP Hikvision story, the Voice of America has reported. On January 11, 2018, the SCMP alleged that the NYPD was using...
Mobile Surveillance Trailers Guide on Jan 17, 2019
Putting cameras in a place for temporary surveillance where power and communications are not readily available can be complicated and expensive....
Exacq Favorability Results 2019 on Jan 17, 2019
Exacq favorability amongst integrators has declined sharply, in new IPVM statistics, compared to 2017 IPVM statistics for Exacq. Now, over 5 since...
Testing Bandwidth Vs. Low Light on Jan 16, 2019
Nighttime bandwidth spikes are a major concern in video surveillance. Many calculate bandwidth as a single 24/7 number, but bit rates vary...
Access Control Records Maintenance Guide on Jan 16, 2019
Weeding out old entries, turning off unused credentials, and updating who carries which credentials is as important as to maintaining security as...
UK Fines Security Firms For Illegal Direct Marketing on Jan 16, 2019
Two UK security firms have paid over $200,000 in fines for illegally making hundreds of thousands of calls to people registered on a government...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact