Leading position in China's video surveillance systems and solutions market. Robust research and development capability with growing proficiency in software technology capability but limited differentiation in hardware. High concentration in the domestic market, with fewer product lines than international technology conglomerates. Intensifying competition in a highly fragmented market in the absence of clear industry standards. Good balance sheet, with a likely net cash position over the next two years. Free operating cash flow generation capacity over the next two years. Minimal debt leverage. Higher, albeit mildly declining, profitability than that of domestic peers. The stable outlook on Hangzhou Hikvision Digital Technology Co. Ltd. reflects our expectation that the company will maintain its leading market position in China's growing surveillance systems
