51cent, thanks for your reply!
Unfortunately I already tried all that, i.e. factory reset and also changed the router, but no luck. Weird thing is that I also have a couple of DH-IPC-K35P which work perfectly fine with the same wireless setup. The last thing I decided to try was to switch the power adapters between K35P and HFW1200S-W. They both are 12V 1A but the ones I use on K35P are from factory and the ones I use for HFW1200S-W were bought separately and I hoped they are not giving stable enough power. It is too early to make any conclusions but they work fine for more than 24 hours now. Strange enough that K35P also works fine on the potentially "faulty" adapter. Anyway, if anyone have a newer firmware that I mentioned below please let me know. I also have an annoying software bug which I hope was fixed.