China Fund News Jia Zhanying
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With the wave of artificial intelligence attention set off by ChatGPT, artificial intelligence concept stocks are highly active, and the artificial intelligence index has risen by 51.56% year-to-date (as of the close of May 31). According to the classification of Wind concept stocks, there are 66 listed companies in the artificial intelligence sector, including Hikvision, iFLYTEK, Inspur Information, Cambrian and other companies with high market attention.
From May 16 to May 29, a total of 1,632 listed companies were investigated, of which Yasui Food and United Imaging Medical became the focus of research of fund companies, welcoming 104 and 102 fund companies respectively. Xinyuanwei is third, with 94 fund companies participating in the survey.
(Source: Flush iFind)
Hikvision has always been known as "security Mao" by the market, because the company has shown high growth. Especially from 2007 to 2021, the company's operating income and net profit continued to increase, and the stock price rose nearly 20 times, which attracted a number of institutional heavy positions.
According to public information, Hikvision is an intelligent Internet of Things solution and big data service provider with video as the core. The company focuses on intelligent Internet of Things, big data services and smart business, builds an open cooperation ecosystem, provides services for users in the public service field, enterprises and small and medium-sized enterprises, and is committed to building smart cities and digital enterprises with cloud-edge integration, information integration, and digital intelligence integration.
(Hikvision stock price performance Source: Wind)
According to the latest release of the first quarter, Hikvision's operating income in the first quarter was 16.201 billion yuan, down 1.94% year-on-year, and the net profit and non-net profit were 1.811 billion yuan and 1.554 billion yuan, respectively, down 20.69% and 29.67% year-on-year.
Despite the pressure on performance, Hikvision continues to invest heavily in R&D.
According to the annual report, Hikvision invested 9.814 billion yuan in R&D in 2022, accounting for 11.8% of the company's sales. Continuously maintain a leading position in the industry. In this regard, Hikvision said that continuous and high-intensity R&D investment will build a comprehensive competitiveness for Hikvision in the era of intelligent IoT. With the acceleration of the pace of economic recovery and the overall recovery trend, Hikvision, which is in the trillion-level intelligent IoT market space, said that it will usher in broader development space and opportunities.
At the same time, the continuous increase in R&D investment is also related to Hikvision's innovative business.
Since 2015, Hikvision has encouraged internal employees to innovate and start businesses, established an internal innovation co-investment system, and successively established 8 innovative businesses, namely Fluorite Network, Hikrobot Robot, Hikvision Microshadow, Hikvision Automotive Electronics, Hikvision Storage, Hikvision Fire Protection, Hikvision Shadow, Hikvision and so on.
On May 25, Hangzhou Hikrobot Co., Ltd. updated the review of the listing application, and the company has replied to the review inquiry letter. This also means that the third listed company of the "Hikang family" is coming.
According to the latest annual report, Hikvision's innovation business revenue will be 15.070 billion yuan in 2022, accounting for 18.12% of the total revenue, continuing to maintain rapid development. Among them, after the consolidated revenue, the revenue of smart home business was 4.077 billion yuan, and the revenue of robot business was 3.916 billion yuan.
With the recent strengthening of the concept of artificial intelligence, Hikvision, as an important application field, has also attracted much attention. Since April, Hikvision has received attention from 22 brokerage research reports, of which 10 have been purchased, 1 has been increased, 4 have been recommended, and many brokerages have been listed on the list of April gold stocks.
Orient Securities said that Hikvision began to develop visual large model technology a few years ago, and has now reached the research and development stage of multimodal large models, including the fusion training and processing of multimodal signals such as vision, speech, and text. Hikvision has also built its own first-class data center, built a parallel training capability of kilocalories, and trained a large model of tens of billions of parameters for intelligent security scenarios, and generated applications for various industries on this model.
At the same time, Hikvision's multi-modal large model has been launched on the AI open platform, which has been applied in more than 100 industry intelligent upgrades and supported more than 15,000 users. Hikvision is positioned as a technology follower, integrates various technologies including AI, and comprehensively considers issues such as economy, closed application environment, privacy, and accuracy of application solutions, so that AI technology can be better productized, better and more effective.
According to the first quarterly report of public funds in 2023, as of the end of March this year, a number of public funds had heavy positions in Hikvision, and many products under many companies were "huddled" with heavy positions, such as E Fund, Harvest Fund, Huaxia Fund, etc. Among them, the 46 funds under E Fund hold a total of 67.8282 million shares, ranking the fifth largest institution and the public fund with the highest number of shares.
During this week, there are many well-known fund managers in the list of fund companies participating in Hikvision's research, including Xie Zhiyu of Industrial Securities Global Fund, Bao Wuke of Invesco Great Wall Fund, Zhao Feng of Ruiyuan Fund, and Wang Bo of Southern Fund.
(Source: Flush iFind)
According to public information, this survey mainly focuses on the company's AI technology research and development and planning, overseas business status, layout direction and other aspects.
Talking about the research and development and planning of AI technology, Hikvision said that the company has long laid out AI technology, launched back-end products based on AI deep learning in 2015, and began to use the Transformer architecture for the research and development of visual large models a few years ago, and trained tens of billions of parameter large models. Because there are many application scenarios of artificial intelligence and various customized needs, when facing the customized needs of artificial intelligence upgrades in thousands of industries, it was decided to take the route of open platform, hoping to serve thousands of industries based on an underlying artificial intelligence basic platform, so that thousands of industries can train industry algorithm models, with relatively controllable personnel growth, to meet the continuous growth of user needs. At present, the visual big model has been successfully applied to the AI open platform, which has served more than 15,000 users in more than 100 industries.
For overseas revenue, Hikvision said that from the perspective of revenue, the proportion of overseas developed and developing countries is roughly four or six apart. On the one hand, the current pressure of overseas developed countries comes from the macroeconomy, inflation and interest rate hikes brought about by recession expectations, on the other hand, from the geopolitical pressure of some countries.
At the same time, the company said that due to the current low visibility of overseas macro, the macro environment fluctuates greatly, and more than 150 countries with overseas layouts have different operating environments, they will adopt the strategy of "one country, one policy" to respond flexibly and adapt to the needs and changes of each country. Overseas will focus on areas with promising space, and will appropriately invest more resources in developing countries and allocate them rationally.
For the layout to be carried out in the future, Hikvision said that the current fragmented characteristics of the intelligent IoT industry determine that human efficiency cannot be improved indefinitely, but it will still steadily control the rhythm of human investment and strive to improve internal operation and management efficiency. At present, the company's software transformation has been basically completed, and it will continue to invest in the company's three major technologies in the future, that is, to develop more intelligent IoT products based on multi-dimensional perception, enhance the capabilities of artificial intelligence and big data, and continue to enhance the company's technical competitiveness.
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