Report
Kazunori Ito
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U.S. Supply Ban Rumors Overdone as Hikvision's Long-Term Story Intact; Maintain FVE at CNY 38.50

Following earlier reports that the United States is considering cutting off the supply of U.S. technology to China-based surveillance equipment makers Hangzhou Hikvision and Zhejiang Dahua, Hikvision's stock fell more than 5% on May 22. We believe that the market has overreacted to the U.S. supply ban rumor, as more than 80% of Hikvision’s core system on a chip and image sensor supply needs are sourced from outside the U.S. The bulk of Hikvision’s reliance on U.S.-made chips stems from its artif...
Underlying
Hangzhou Hikvision Digital Technology Co. Ltd Class A

HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO., LTD. is a China-based company, principally engaged in the research and development, manufacture and distribution of video products, as well as the provision of video services. The Company mainly provides front-end products, back-end products and center control products. The Company's products include video encoders, video decoders, video optical transceivers, network optical transceivers, mixed video recorders (XVRs) and network video recorders (NVRs), among others. The Company also provides construction engineering services and innovation business. The Company conducts its businesses within domestic and overseas markets.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Kazunori Ito

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