Amid the overall pressure in the security industry, Hikvision has delivered a high-quality performance that prioritizes profit over growth. The company recently released its 2025 preliminary performance report: the annual revenue reached 92.518 billion yuan, increasing by 0.02% year-on-year; **net profit reached 14.188 billion yuan, up 18.46% year-on-year**, significantly outpacing the revenue growth, highlighting a substantial improvement in operational efficiency and profit quality.
What stands out is that **the fourth quarter saw both revenue and net profit growth rates jump to 25.83%**, showing a clear acceleration from quarter to quarter. This turning point reflects the effectiveness of the company's "profit-centered" strategy since 2024 — actively optimizing product structure, cutting low-margin projects, strictly controlling capital expenditures, and focusing resources on high-value-added AI innovation businesses.
The cash flow performance was even better than net profit, indicating enhanced recovery capabilities and improved operational health. At the same time, **AI technology has become the core engine for Hikvision's new round of growth**. Its intelligent perception, behavior analysis, and multimodal fusion technologies based on deep learning have been widely applied in smart cities, enterprise digitalization, and industrial vision, driving products from "hardware devices" to "AI solutions" and entering a period of large-scale implementation.
Overseas business and innovative businesses (such as thermal imaging, automotive electronics, and smart fire protection) also contributed steady growth, effectively offsetting fluctuations in the traditional security market and supporting overall performance resilience. Based on this, several securities firms have raised their target price to 45 yuan and maintained an "buy" rating.
Looking ahead to 2026, with the deepening of AI-enabled industry applications and the release of global smart upgrades, Hikvision is expected to continue the trend of "stable volume and rising profits". However, risks remain: fluctuations in the semiconductor cycle may affect chip costs, the speed of AI commercialization is uncertain, and whether the high-intensity R&D investment can continuously be transformed into technical barriers remains a key test of long-term competitiveness.
When a major security company no longer wins through "stocking", but instead drives profit growth through AI, Hikvision's transformation path may be a reflection of China's hard-tech enterprises moving toward high-quality development.
