Bubble: Dahua Doubles Market Capitalization

By John Honovich, Published on Nov 07, 2017

Dahua's stock is in a bubble.

Those of you in the industry know how bad of a year Dahua has had - the zero-day backdoor, the massive hacking attacks against their products, Dahua USA CEO out, Dahua USA CEO's replacement out, etc. in addition to their various normal struggles and bungling.

You might think, "Stock must be down hard." But you would be wrong.

Doubles Market Capitalization

Dahua has more than doubled their market capitalization in the past 12 months, as the chart below shows:

In November 2016, Dahua's market capitalization was ~$6 billion USD.

Now, Dahua's valued at $12.7 billion USD.

How big is that?

**** **** ** **** Dahua's **** ******* ***.

**** **** ** ********* (****)**** *** ****.

Up **% ***** ******** **********

****** *** ** **** increase (**%) *** ******** after *** ***** **** backdoor **********.

Up **% ***** ****** *****

**** ***** *****'* ******** suffered *********** ****** **** ********* *** **** * weeks, *** ***** ***** rose ******* **%.

How **** *********?

*******, ***** ********* ********* are *** ******, ***** *** ********:

“*****’* ***** ****** ** widely ********** *************,” **** ******** ***** at *** ********** ** Pennsylvania’s ******* ******. “****** are********* ********** ******, *** on *** ************ *********.” Chinese ********* ** ******** famously ****** *****’* ****** worse **** *******, ****** that ******* **** *****. [emphasis *****]

*******, ******** ** *****, we *** * ****** proponents ***** ***** **:

***** ******** (************* ** least) * ******* **% increase ** ******* *** H1 **** [**** ** longer *********]. **** ** gigantic. ** **** * sense ** ***********, ** is *** ******, ****** 2x, *** ****** ** rate ** *********. *** Dahua ******** **** ** unclear. ** ** ********** not **** *** '********'/************* market ***** ***** ******* visible *********** *** *** that ** ***** * minority ** ***** ******* business.

*** ***** ***** ****** is ********* ************ / deep ********, *.*., ***** (and *********) *** (**** hope) ** *** ***** of ******* ******* ******* of ****** ********** **** learning ********* ****** *** world.


** ***** ********** ******, that ** **** ***** financials ***** * [**** no ****** *********] ******* 92% **** ** **** flow. *** *********** ** ones ** *** ******** it ** ***. **** was * *** ****** of ******* **** * Chinese ******** ****** *** reviewed *****'* **********.

** *** **, ***** is * ******* **** literally ***** **** ***** *************** that **** ***** *** figure *** ******* ***** ********* *** the ****** ******* *****. And **** ** *** same ******* **** *************************** ***** ** ***** to ** * ****** leader ** ********** ************.


**** ** ********* * bubble. ***** ** * poorly *** ******* ** an ********** ******.

**** ** ** ***** to ***, ** ***** not *********. ** ****** famously ********, "*** ****** can **** ********** ****** than *** *** **** solvent". *** **** **** twice *** * ******* government-controlled ***** ******.

***** ** ********* ** upside, ** ***** *** Dahua **********. ** **** can ******* **** ****** valuation **** ******* ******* of *****, **** *** be *** *** ***********.

*** **** **** ** will - ************, **********.

Comments (25)

Those of you in the industry know how bad of a year Dahua has had - the zero-day backdoor, the massive hacking attacks against their products...You might think, "Stock must be down hard." 

But, as you have pointed out, nobody really cares about cameras getting hacked.

Or has the tide turned?

In 2016, we argued: Why Surveillance Pros Rationally Won't Care About The Massive Dahua Mirai Attack, specifically:

Mirai is a parasite, using the resources of its host for its own purposes, but it does not "kill" the host and render it inoperable. Instead, it leaves the device relatively unaffected to the end user, still allowing it to operate. This is one part of the reason many in the security industry have not been more concerned about Mirai, it does not really break anything.

The 2017 Dahua vulnerabilities are their resulting abuse / attacks are fundamentally different. The devices are being affected, the integrators are being embarrassed and forced to rush to upgrade / fix units, while dealing with Dahua's unclarity and delays in getting out fixed firmware.

So, yes, I still think Mirai was 'rationally' ignored by integrators because their customers were not directly impacted that much, but the backdoor hacks are a different story.

As a secondary point, I think integrators care more overall in 2017, partially due to those 2017 issues.

Just as an FYI UD1. Most people don't care until it affects their revenue. The newest version of the exploit for Dahua creates a service call. Thus most of the people I know in the industry really do care about these issues.

The newest version of the exploit for Dahua creates a service call.

Fair enough.

btw, does upgrading the firmware really require a truck roll?

Depends on how much the customer has their NVR exposed to the internet, which is kind of the reason for the issue in the first place.

Sometimes. A lot of it depends on the level of remote access I have to the site. The issue I normally see is the sites I have good remote access to are already behind my VPN and are kept fairly well protected. (I work for a mid/large installer and we have systems across all 50 states)

The random jobs done by 'Insert_Installer_Name' from 2/3 years ago don't tend to be as well protected and they are usually not easily accessible via remote access. Hence a truck roll to correct the issue. 

...they are usually not easily accessible via remote access.

But then they arent they are not vulnerable to the hack, so maybe it can wait til the next maintenance call?

If I don't have access to a computer/router on the LAN then 9 times out of 10 I need someone on site to get hands on the unit. Sometimes this can be accomplished with site personnel. However most of the time it results in a service call. 



Just because I don't have access to the system doesn't mean it isn't just sitting on the internet. Most of the time the device I have to deal with have already been hacked and I am talking from a perspective of correcting it remotely. 

Unrelated to security concerns or product market, I think this is more related to the fact that....

Most of US and Brazil Stocks are currently riding on a big bubble.


For the US you can blame the swiss banks who print money out of thin air and devaluate their own currency =)


I think this is more related to the fact that.... Most of US and Brazil Stocks are currently riding on a big bubble.

Why do think that would affect the Shenzhen stock market?

Sorry, incomplete post =p. 

China bubble master with lots of US Treasury, apple stock and alphabet =|


I read news and see that Dahua is going to sell cars next year. Dahua is playing capital game now.

Can you share where you read Dahua was going to sell cars? I know they are expanding into lots of different areas but had not seen that one.

Yes, top level management in Dahua have been saying for a while now (12+ months) that they are developing electric cars (of some sort).

Yes, top level management in Dahua have been saying for a while now (12+ months) that they are developing electric cars (of some sort).

Then maybe they are undervalued :) Sigh...

That's crazy that they would even consider that. It's so unrelated.

The investment, auto development and factory construction already took place (I found a mandarin news because couldn't find relevant English ones): http://www.nbd.com.cn/articles/2017-03-17/1086073.html

The name of the auto series is called Lingpao (meaning pioneer or someone who takes lead at a race) in mandarin.



#4, thanks. We are releasing an article on this later today. We found some other Chinese language sources but not the one you cited. Btw, the English name and website is  LeapMotor.

Hi John,

The official launch of the electric car happened today in Hangzhou. It is something that we are all very excited about. I am personally looking forward to the opportunity to drive and hopefully own one of these.

The development of this vehicle is certainly a clear signal to the market that Dahua wants to be more than just a CCTV manufacturer. Not only are we working on electric cars, we also have other products outside of the electronic security world such as warehouse automation systems and digital signage.

I put some pictures of the car on LinkedIn today. Just click the link to have a look. Pictures of Electric Car


No backdoors! Nice.

UD1 - That is a very good observation. During our vulnerability testing there were actually two backdoors discovered however after a lot of cutting and welding we were able to successfully remove all traces of them.

During our vulnerability testing there were actually two backdoors discovered...

They’re still offered on the Mirai at least...

Something worth a mention is sinosure

almost all goods are insured

south Korea offered this and China have copied it over 1 trillion of

imsured debt

as Long as hik dahua could raise and invoice

they we’re getting paid so they could called

On bank’s to lend money giving them expentiual Growth

the matrix of lending to dahua oem hik oem

branded partners it most


have different negotiated contract

hik dahua didn’t care how many

cistomers went bust they got paid and didn’t have to worry about rma

but now the insurance company is over heating

as everyone using the same insurance company

so if you don’t pay a small supplier even if products don’t use loose credit thorough out the whole of china






Still suffering brain surgery

Even product don’t work you have to pay

Btw sinosure is based in bejieng

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