Key takeaway

In 2025, HIKVISION recorded revenue of RMB92.508bn, up 0.01%YoY, and net profit attributable to shareholders of the parentcompany of RMB14.195bn, up 18.52% YoY. In 1Q26, revenue andnet profit attributable to shareholders of the parent companygrew by 11.78% and 36.42% YoY respectively, with gross marginrising to 49.09%, further unlocking profit elasticity. With thecompany's high-quality business management, ongoingexploration of AI product applications, and sustained growth ininnovative businesses and overseas markets, its performance isexpected to continue improving. For 2026-2028, revenue isforecast at RMB100.497bn/109.968bn/119.741bn, up8.64%/9.42%/8.89% YoY respectively, with net profit attributable toshareholders of the parent company ofRMB16.076bn/18.104bn/20.198bn, up 13.25%/12.61%/11.57% YoYrespectively. This corresponds to P/E multiples of 18x/16x/14x.We maintain "Buy" rating.

Event

In 2025, the company reported operating revenue ofRMB92.508bn, up 0.01% YoY; net profit attributable toshareholders of the parent company of RMB14.195bn, up 18.52%YoY; and adjusted net profit attributable to shareholders of theparent company of RMB13.703bn, up 15.98% YoY. In 1Q26, thecompany recorded operating revenue of RMB20.715bn, up11.78% YoY; net profit attributable to shareholders of the parentcompany of RMB2.781bn, up 36.42% YoY; and adjusted net profitattributable to shareholders of the parent company ofRMB2.648bn, up 37.44% YoY.