Hikvision Stock Down 50%+ From 2015 Peak

By: 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.

****

** *** **** **** year, *********'* ****** ************** was ~$** ******* ***, trading ** ** ********** 10x ******* ********* *** having * ****** ********* roughly ***** ** *** **** of *** ****** ***** surveillance ******** ********.

****

**** * ****** ***, Hikvision's ***** *** ****** ~53% **** **.** **** to **.** *****.

***** ***** *** * sharp **** ** *** early ******, **** ******* notable ******** ** *** past * ******.

****: *** ******* ********** suspended ******* ** *********'* shares *** * ****** in **** ** *********** by *** **** **** in *** ****** ** the *****.

China ***** **** ****** 

********* ** *** ***** here. *** ******* ***** market *** ***** ****** over *** **** ****.

**** ** *********'* ***** chart ***** **** ******* (2015):

*** **** *** ** the ***** **** ** 2015, **** *********'* ***** price *** ***** ***** than **** **** *******, despite ******* **** ******* growth ** ~**%.

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

*** **** ******* ** the ****** ** *** Chinese *******. ** ***** has ******** ****** [**** no ****** *********], **** was *** ******* ****** in ** *****. ** the ***** ****, ***** emphasizes **** ****** ** still ********* **** ** world ********* (* ******** 6.9%) *** **** **** are *********** ******** *********** in * '*** ****** [link ** ****** *********]'. As *** **** ** stock ****** ****, **** are********* ** *****'* ********** / *** *******. 

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

*** ******* ********** *** been ******* *** ** defend / **** ** stock ******, *********** ******* ********** [link ** ****** *********] **** sell ****** ** ***** own *********, ****** ****** themselves (*** '******** **** [link ** ****** *********]'), restricting ***** ******* [**** no ****** *********], *** abject ******* ** ***** market '******* ******** [**** no ****** *********]', ***.

*************, ***** ******* **** not **** ******* *** it ** ******* ** what ***** / ***** level *** ******* ********** can ********* *** ****.

Hikvision ******

* ******* ***** ***** has **** ********, **** acquisitions, ** ******* ******* equity (*.*., *** ************ postponed **** **** ***), to ******* *********.

*** ****** ******* ** weakness ****** *********'* **** China ******, ****** **** less ******** / ********* wealth *** ** ******* stock ****** *** **** the **** ** *** 'new ******' ******* ******* back ** *********** *** vast ************** ******** ***** 2008 **** *** ********* Hikvision ** ** *** biggest ***** ************ ******* in *** *****. *****'* government *** **** ** clear **** **** *** moving ** **** ** a ******** [**** ** longer *********], ****** **** investment ****** *******, *** how *** ***** **** could ************* ****** *********'* core ****** / ****** generator.

Further ****?

**** ***** *** ***** fall, *********'* ****** ************** is ***** ~$** ******* USD, ~** ***** **** sales. ** **** ******** to **** ** **%+ and ******** **% *** margins, *********'* ***** ** an ******** *****.

** *** ***** ****, even ***** **** **** only **** ***** ~**%. If ********* ***** **** to **** ***** *** their ****** ******* ******* (due ** * ******* Chinese ****** *** *** challenges ** ******* *********), Hikvision's ***** ***** ***** easily **** *** ******* as ~** ***** ********* is ***** ****** ****.

**********, ******, ** **** of *********'* ****** ***** on *** **** ** the ******* ********** / economy *** ** ******* to ** **** ******* it ***** * '****** landing', '**** ******* [**** no ****** *********]' ** 'crash *******'.

Comments (10)

Frank Yeh

01/28/16 05:55pm

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.

Undisclosed #1

IPVMU Certified | In reply to Frank Yeh | 01/28/16 07:24pm

Shenzhen Suspension.

John Honovich

IPVM | In reply to Frank Yeh | 01/28/16 11:39pm

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.

Undisclosed #1

IPVMU Certified | In reply to John Honovich | 01/29/16 12:16am

What was the other source?

Goldman says that trading was suspended for two months.

John Honovich

IPVM | In reply to Undisclosed #1 | 01/29/16 01:17am

Google Finance Hikvision chart

Frank Yeh

In reply to John Honovich | 01/29/16 08:23pm

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!!!

Undisclosed #1

IPVMU Certified | In reply to Frank Yeh | 01/30/16 12:24am

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.

John Honovich

IPVM | In reply to Undisclosed #1 | 01/30/16 12:28am

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. "

Frank Yeh

In reply to John Honovich | 01/30/16 03:06am

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.

Undisclosed #1

IPVMU Certified | In reply to John Honovich | 01/30/16 03:46am

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...

Read this IPVM report for free.

This article is part of IPVM's 6,533 reports, 880 tests and is only available to members. To get a one-time preview of our work, enter your work email to access the full article.

Already a member? Login here | Join now

Related Reports

Huawei HiSilicon Shortage Impacts Surveillance Manufacturers on Aug 14, 2020
Huawei acknowledged problems and challenges for its HiSilicon chip business,...
Hikvision Global Revenue Falls, Hit By Coronavirus on Apr 27, 2020
Hikvision's global revenue fell in the first quarter of 2020 due to the...
Uniview H1 2020 Financials Examined on Sep 08, 2020
While Dahua and Hikvision, helped by fever camera sales, are recovering from...
2020 Mid Year Video Surveillance Industry Guide on Jul 27, 2020
The first half of 2020 has been shocking, for the world generally, and for...
ADT Slides Back, Disappointing Results, Poor Commercial Performance on Aug 06, 2020
While ADT had an incredible start to the week, driven by the Google...
Infinova, March Networks and Swann H1 2020 Financials Examined on Sep 02, 2020
While Dahua and Hikvision, helped by fever camera sales, are recovering from...
The Future of H.266 For Video Surveillance Examined on Aug 17, 2020
First H.264, now H.265, is H.266 next? H.266 was recently announced amid...
Hikvision Global News Reports Directory on Aug 13, 2020
Hikvision has received the most global news reporting of any video...
Fever Camera Sales From Integrators Surveyed on Jun 01, 2020
Fever cameras are the hottest trend in video surveillance currently but how...
Huawei HiSilicon Production Shut Down on Sep 17, 2020
Huawei HiSilicon chips are no longer being manufactured or supplied to...
Anyvision Presents AI Facial Recognition and Mask Detection on Jun 08, 2020
AnyVision presented its AI facial recognition and mask detection at the May...
NetPosa's Terrible Situation Worsens on May 19, 2020
NetPosa is fighting for its existence as the situation worsens for what was...
Dahua Profits Surge Due To Fever Camera Sales on Aug 25, 2020
While Dahua's overall revenue is down, driven by challenges within China, the...
Coronavirus Hits Manufacturers, Standing Now, Worse To Come on Apr 06, 2020
Coronavirus is hitting security manufacturers, though overall modestly for...
US Passes Uyghur Human Rights Law Condemning Mass Surveillance on Jun 18, 2020
The US government has passed the Uyghur Human Rights Policy Act of 2020,...

Recent Reports

Hikvision Sues Over Brazilian Airport Loss on Sep 24, 2020
Hikvision was excluded from a Brazilian airport project because it is owned...
China General Chamber of Commerce Calls Out US Politics on Sep 24, 2020
While US-China relations at an all-time low, optimism about relations...
Verkada Disruptive Embedded Live Help on Sep 24, 2020
Call up your integrator? Have someone come by the next day? Verkada is...
IP Networking Course Fall 2020 - Last Chance - Register Now on Sep 23, 2020
Today is the last chance to register for the only IP networking course...
Drain Wire For Access Control Reader Tutorial on Sep 23, 2020
An easy-to-miss cabling specification plays a key role in access control, yet...
IPVM Camera Calculator User Manual / Guide on Sep 23, 2020
Learn how to use the IPVM Camera Calculator (updated for Version 3.1). The...
Installation Course Fall 2020 - Save $50 - Last Chance on Sep 22, 2020
Today is your last chance to save $50 on registration for the Fall 2020 Video...
SimpliSafe Business Security Launched Examined on Sep 22, 2020
SimpliSafe has launched "SimpliSafe Business Security" that the company...
FLIR CEO: Many New Fever Entrants "Making Claims That The Science Just Won't Support" on Sep 22, 2020
FLIR's CEO joins a growing number calling out risks with fever / screening...
China Bems Temperature Measurement Terminal Tested on Sep 22, 2020
Guangzhou Bems (brand Benshi) is the manufacturer behind temperature...
Axis Exports To China Police Criticized By Amnesty International on Sep 21, 2020
Axis Communications and other EU surveillance providers are under fire from...
Milestone XProtect on AWS Tested on Sep 21, 2020
Milestone finally launched multiple cloud solutions in 2020, taking a...
Mobile Access Control Usage Statistics 2020 on Sep 21, 2020
Most smartphones can be used as access control credentials, but how...
Axis Compares Fever Camera Sellers to 9/11 on Sep 18, 2020
Axis Communications, the West's largest surveillance camera manufacturer, has...