Key ********* ****
**** ***** ********** *** key ********* **** ******** inside **** ****** (***** for **** ****):

Incredible ************* ** ********* *** *****
*********'* **** ******* **** ~$750 ******* ***; *****'* were ~$*** ******* ***.
** *** **** ** perspective, *********'* ******* *** roughly ***** ** ****' total *******, *** **** is * **** ******* for *** ***** ************ market. *** *****'* ******* are ******* ***** ** Milestone *** *******'* ******* combined. **'* **********.
** *** ***** ****, Hikvision *** ***** *** clearly *** ********** ***** ******* ******* from ******* *******. *** overwhelming ******* *** ******** all *** ******* *** coming **** *** ******** Chinese ******. ** **********, how ********* ********* **** a **** *** ****** margin ***** ******* ** heavily ** *** ******* government ** **** ** understand, ****** **** *** Chinese ********** ********* **** the *******.
****** **** **** ** unfair *********, ***** ** nothing **** *** ** done ***** ** ** long ** *** ******* government ** ********* ** spending **** **** *** lavish **** ** ***** surveillance **** ***** ******** manufacturers. *** **** ***** that ********* *** ***** have ********** *** ****** to ****** ***************.
Hikvision ********* ***** ** ******** **** ********
*********'* ****** ********* ** ~$28 ******* ***, ****** roughly ******* ** *** past ****. ** ******** that ** ***** ** every ***** ************'* ************ businesses' ********* ********, ********* Axis, ********, *****, *****, Sony, *******, ****, ***., etc.
*** ******* ****** ** this ** **** ********* is ****** ** *** their ****** *******, * mind-boggling ****** *** * company ** **** **** / ***. ** **********, Axis **** ** ~** their ******* *** **** industry ********* **** **** Canon ************* ********. ******** is ******* ** ~** their *******. **** ***** surveillance ************* *** ****** at ** ** **** their *******, ********** *** lower ****** ***-**** ******* ones.
*** ***** ****** ** Hikvision's ******* ** *** so *****. **** ******* was ****** $* *******, up ******* $* ******* year **** ****. ** is ** ** ********* grew '** ****' ** a ****.
**** *** ***** ******** the * ***** / Taiwan ************* ********:

***** ** *** ****** manufacturers *** ****** ** ~$200 ******* **** (*********, Dynacolor *** *******), *** they *** ********** ******* by ****** ********* ** Dahua.
** **, *** ******* manufacturer's ******** ***** *************, both *** ********* *** revenue ******. ** ******, much ** **** ******* on *** ******* ********** willingness ** ***** **** sums ** ***** ************, direct ** ******* ********* and ***** **** ** generate **** ******* ** it.
Chinese ****** ******** ******
*** ************, ********* *** Dahua **** **** *** Taiwanese *************. *** **** are *** ********* ********* at ** ******* ********* disadvantage ****** ** *** Chinese ******** ********, ********* and ***** *** ************ the ********* ************* ** the ************* ****** ****** which ** ** ******** to ****.
*/**** ** *** ****** surveillance ************* ******** ******* declines ** ****, **** only *********, ** ***, having ****** **** *%.
**** ***** ***** *** variance ******* ******* *** Taiwanese ************ ******:

Taiwan ***** ***** ********
*** ********* ************* **** suffered ****** *** ***** sharp ******** ** ***** stock ***** **** *** past ** ******.


** *** ******** ****, most ** *** ********* stock ****** *** **** rising ******* ** *** previous *** ***** ****** this. *******, *** ******** in *** **** **** have **** ***** *****, with **% ******** *******.
The '******** ** ****' - *********
********** ********, *** ********* company ***** *** **** is *********, *** **** not **** *** *** a *** ** *****. Unlike *** ***** ********* manufacturers *** ***** ******** on *** **** ** the ***** (*.*., ******* ** recorders), ********* *** **** focused ** ******** *****.
********* *** ************ **** profits *** *****, ** the **** ***** ** Hikvision *** *****, ********** impressive ***** ***** **** of * ********* *********. The **** ******* *** Geovision ** ******* ****** - ***** *** **** minimal **** *** **** three *****.
*******, ********* ** ********* another ******* ** * solution ******** ***** *********** well *** ******, **** if ** ** *** as ****** **** ** recommended.
Challenges *** ******* ************* **** **** *** *******
*** *** **** ***** Taiwan ****** ** *** West *** **** *** Vivotek. ******* *** ***** that **** ***********, ******* the **** **** **** do ******** ** ****** aggressively ******* *** ********.
**** *** **** ***** in *** $** ******* revenue ***** *** *****, generating ****** ** ** net *******.
******* *** ****** ****** 3 ***** ** ***** as ****, ** *** ~$120 ******* ******* *****, with ***** *** ******* in *** **% ***** over *** **** *** years. *******, *******'* ******* dropped ~**% ** *** past ****.
**********, ** ** * very **** **** *** the *** ** **** to ******* **** ********* and ***** *** *** selling **** ******* ******* yet *** ******* ** offer **** ** *********** discounts ** **** *** low ***** **** *** Vivotek **** ************* *******.
Manufacturer **** *** **** ******** - *********
*******, ***** ** ******* one ************ *** ****** out *** ****** *** most ******** - *********.
** *** **** **** alone, ******* *** ******* 25% ** ~$** ******* USD. ***** * ***** ago, ********* ******* *** in *** ~$*** ******* USD *****. ******* ********* is **** *** ******* are *********** ***.
********* *** ****** ** the ******. ****** **** and *******, **** ***** really ********* ** **, so **** ****** *** on **** ****** / opportunity **** *** **** 5 - ** *****. Instead, *** *************, ************ ******/ **-*** *****, ******* **** costs *** *** *******.
HD ****** *** *** ******
****** *** **** ********* the ******* ************* **** domestically, ** *** ****** strong ****** ** ** ******, ****** ** **** low ******** ******* *** true ** *******. **** will ******* **** *** Chinese ************* *** ********* the *********, *** **** focused *** **** ** IP, ***** ** ***** susceptible ** *** ***** end ** *** ****** they **** ************* **** well **.
****** *** ******* ******** market ***** / *****, we ******* *** **** damage / ****** **** the ******* ***** ** Hikvision *** *****.
Comments (26)
Itamar Kerbel
The interesting manufacturer for me is Dynacolor. It is doing pretty well I guess since they are able to compete with western manufacturers as they are taken as an OEM for European and American companies.
If I'm not is taken both Grundig and DVTel cameras are Dynacolor OEM and they are accepted in bids where a "Taiwanese" company will not be accepted.
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Undisclosed #1
Is Uniview relevant here?
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Undisclosed Manufacturer #2
IP camera is technology driven, need a lots of RD investments. Not just money, it also needs programmer, testing engineer, etc. Companies’ performance is result on their R & D investments.
China is a huge market, they install IP camera along the highway, and issue speeding tickets electronically. And they start using camera control traffic lights. China is a global manufacturing power house; they own the global market now, that’s huge.
Today’s China is capitalism; it’s a free market. Hikvision and Dahua are public trade companies; like public trade large companies in the states. They might bid on municipal projects, or the state may own some of their stocks, but the government doesn’t involve in their management or operations.
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Aaron Tankersley
Any thoughts on Infinova (SHE:002528) and their competitive position and acquisition strategy (March, Swann)?
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Undisclosed Distributor #3
Hikvision and Dahua are both traded on the Shenzen stock exchange which is up 90% for the year (can you say bubble?) where the Taiwan stock exchange index is up only 4% over the past 12 months. This has to be given some consideration when comparing stock performance between the Chinese and Taiwanese manufacturers. Interestingly, Dahua shares were trading at $47 at the end of May and are now at $32.
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