Research Update: Hikvision Off CreditWatch Negative On Supply Chain Resumption; 'A-' Rating Affirmed; Outlook Stable

Supply resumption by some U.S. component providers alleviates pressure on Hikvision's supply chain and market position, after the U.S. Department of Commerce placed the company on its Entity List. We believe Hikvision will maintain its market leadership, growth trajectory, and cash flow generation, despite potential slowdown in overseas sales growth. On Nov. 25, 2019, S&P Global Ratings affirmed its 'A-' long-term issuer credit rating on Hangzhou Hikvision Digital Technology Co. Ltd. At the same time, we removed the rating from CreditWatch with negative implications. The outlook is stable. The stable outlook reflects our view that Hikvision's placement on the U.S. Entity List will not have a material impact on the company's operations. We expect the company can maintain its market

...- Supply resumption by some U.S. component providers alleviates pressure on Hikvision's supply chain and market position, after the U.S. Department of Commerce placed the company on its Entity List. - We believe Hikvision will maintain its market leadership, growth trajectory, and cash flow generation, despite potential slowdown in overseas sales growth. - On Nov. 25, 2019, S&P Global Ratings affirmed its 'A-' long-term issuer credit rating on Hangzhou Hikvision Digital Technology Co. Ltd. At the same time, we removed the rating from CreditWatch with negative implications. The outlook is stable. - The stable outlook reflects our view that Hikvision's placement on the U.S. Entity List will not have a material impact on the company's operations. We expect the company can maintain its market leadership and financial metrics over the next 12-24 months....

Research Update