Hikvision (002415 CH) reported 4Q21 revenue that exceeded expectations due to security projects. The company recognized revenue for projects that had relatively low GPM. Analysts estimate 2021/2022/2023 attributable net profit of RMB16.8/20.7/24.7bn, with the shares trading at 85% of their average valuation since the IPO. The industry is expected to enter an upcycle in 2022, but this may take some time. The target price was lowered from RMB86.40 to RMB79.56, but the BUY rating remains unchanged.
