Hangzhou Hikvision Digital Technology (002415.SZ): 2Q26 results beat on sustained strong GM

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Hangzhou Hikvision Digital Technology (002415.SZ): 2Q26 results beat on sustained strong GM

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26 Jul 2026 19:36:27 ET │ 16 pages

Hangzhou Hikvision Digital Technology

(002415.SZ)

2Q26 results beat on sustained strong GM

Neutral CITI'S TAKE

Price (24 Jul 26 15:00) Rmb35.490

Hikvision released its 1H/2Q26 financial results and held an investor Target price Rmb38.100↑

briefing on 25 July. Key highlights: 1) 2Q26 net profit +41.3% YoY and net from Rmb33.700

margin reaching 19.6%, net profit growth accelerated for six consecutive Expected share price return 7.4%

quarters; 2) Gross margin structurally re-rated to 50%, driven by product

Expected dividend yield 2.5% mix improvement, rising self-manufacture share, and disciplined pricing,

Expected total return 9.9% management guided that margins will not revert to the historical 42–46%

range in 2H26; 3) AI large-model monetisation at inflection: 1H26 AI- Market Cap Rmb325,261M

related revenue already exceeded 1.5x of full-year 2025 AI revenue; US$48,029M

4) Innovation business on track to contribute ~50% of full-year profit

increment; 5) Full-year targets reaffirmed: revenue exceeding RMB 100bn

and net profit at a historic high. We update our earnings forecasts and

Kyna WongAC raise our TP from RMB 33.7 to RMB 38.1 to reflect higher sales/GM.

+852-2868-7820

Maintain Neutral rating.

kyna.wong@citi.com

Yiming Li, CFA1H/2Q26 Results Beat — 2Q26 revenue came in at RMB 26,107mn, +12.1% YoY,

beating CITIe of RMB 24,757mnby 5.5% and broadly in line with BBGe of RMB Kevin Chen

26,498mn. Gross profit of RMB 12,989mn beat CITIe/BBGe by 16.6%/6.6%, with

Karen Huanggross margin expanding to 49.8% (+5.2ppts YoY, 4.8/3.8ppts above CITIe/BBGe) —

the standout metric of the quarter. Operating profit of RMB 5,718mn beat