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在线翻译:
szdaily -> Markets -> 
Hikvision ready to recoup US$11b market loss
    2018-07-30  08:53    Shenzhen Daily

HANGZHOU Hikvision Digital Technology Co. has bled US$11 billion of market value since U.S. tensions and concerns about a slowing Chinese economy knocked it off a March peak. Now, the world’s largest maker of surveillance equipment is counting on smarter robotic devices to more than recoup those losses.

The world’s largest maker of spy gear remains the dominant player in a global video surveillance hardware arena projected to grow 10 percent to US$18.5 billion this year, according to IHS. It had at one point been pricier than e-commerce leader Alibaba Group Holding Ltd. — and could be again. Analysts are betting the government and corporate clients it’s won from Xinjiang to Milan will upgrade to next-generation gadgets infused with AI, sustaining growth and boosting its bottom line.

Analysts, of which 29 of 30 rate the company a buy or outperform, are calling for a rally of more than 30 percent over the coming year. On Thursday, Hikvision’s stock rose as much as 2.2 percent in early trade.

“AI is more related to the software analytics capability that the company is providing and has a higher technology barrier. It’s more than just selling the hardware,” said Rex Wu, an analyst with Jefferies. “That’s why investors like the company and gave it a higher valuation.”

Foreign investors have long been enamored of Hikvision, whose shares more than doubled between December 2016 and March, as they bought its Shenzhen shares through a stock connect link with Hong Kong.

The four-month stock decline has now pushed the company’s estimated earnings multiple to 27 times. That’s still more expensive than Apple Inc. and at the high end of its peers.

But it also enjoys a higher return on equity than 93 percent of similar global hardware firms, and its estimated three-year average sales growth of 27.5 percent is about twice its industry’s mean, according to data compiled by Bloomberg.

(SD-Agencies)

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