Dahua Profits Surge Due To Fever Camera Sales

By Isabella Cheng, Published Aug 25, 2020, 09:46am EDT

While Dahua's overall revenue is down, driven by challenges within China, the company's overall profitability is up more than 10%, driven by a successful sales expansion into fever cameras.

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Although revenue has recovered somewhat since plunging 20% in Q1, Dahua is still doing worse than rival Hikvision, who has returned to growth in Q2. Overseas growth and sales of high margin products, such as fever cameras, are helping Dahua recover from its sales plunge in Q1.

In this post, we examine Dahua's H1 2020 financial disclosures and what this means for Dahua going forward, including:

  • Q2 recovery, but sales still down for H1
  • Profits continue to rise
  • Fever camera sales driving profit growth
  • Overseas sales continue to grow
  • Market's positive response to financials

Recovery **** ** **, *** ***** ***** ****

** **** ***** **** down *.**% *** ** $1.4 ******* (******* ***** are ** ******* ***):

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**** ********* ** * decelerating ****** ***** *** the ******* **** *** past * *****:

***** ***** *** * nearly **% ******** ** sales ** **, ** sales ********* ************* *** were **** **** **** 2% ******** ** ** 2019.

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Dahua ******* ********** **** ** *******

***** ***** ******** * drop ** *******, *** profit ************ ** ************ was ** **.*% ***.

***** ********* ******* ******** hurts *******, ************** ******** * ************ drop ** *******/**** ** profits ** **. ***** ********** **** to ***** ********* ***** and "********** ************ ** product *********."

***** ******** *** ********* costs ********* ** **** 30% ******** ** *** same ****** ** ****. Because **% ** * significant ******, ***** ********* in *** ****** **** the ******** *** ******* "products **** **** ******* make ** * ****** portion ** *** ******* period’s ***** **** ** 2019."

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Overseas *****, ******** *******

***** *****'* ******* **** outside ** ***** ** nearly *%, *** *******'* domestic ******* ********* ** over **%, **** ***** now ***** **** **% of *** ******** ******* of *****:

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** ** ****, ***** and ********* ********** ****** ***** *** their ******** *****. *******, *********'* ******** revenue ** ***** **** about **% ** *** total *******, ***** ***** is **** **%.

Fever ******* ******* ***** ****** ********

*****'* ******** ***** ****** margins ********* ** ********** points *** (**** ~**% to ~**%), ** ********** and ********* **** ******:

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**** ******* *** ******* sales ***** *** ***** equipment ********* ~**%, ******** costs ******** ********** ********.

**** ******** ******** ***** reports, *** ****** ***** was ****** ***** ****** sales. ***** ***** ****** sales ********* ********* *** a ******** ** *****'* $600 ******* ******** ***** for *** ******, *** profitability ** ***** ******* was ** ***** **** it ********* ********* *** entire ******** *******'* *************.

** ******** ***** ****** margins ** *****'* ***** camera ******* ***** ** 75% ** ****** (*.*., Dahua ******* ***** ******* at ~$*,*** *** ***** cost ** ***** **** being $*,*** ** *****).

********* ********* *** ******** ** ********** ***** increase** ***** ****** ******* in ** ****, ***** we **** ********* ********* to ***** ****** *****.

Dahua ***** ** *%, ******** *******

*****'* ***** *** ** 5% ** ******, *** first **** ******* *** following *** ******* ** H1 *******.

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******** ***** *** *** fully ********* **** *** sales ****** ** **, investors *** ********** **** to *** ******** ******** in *******. ******** ********** reports ******** ** ******** to *****'* ****** ********* report **** *** ******* a "***" ******. ******* from**,******, ******** ************* ***** *** *****'* overseas ****** *** *****'* control ** *** *****-** epidemic ** ********* *** the ******* ** **. Indeed, *****'****** ***** ************ ***** are ******** ** ** down** *, *** *****, the ********* ** *** outbreak*** *** ******** *** cases ** * ******. ******* **** *****'* performance **** ******** ** improve ** ********** *** enterprise ****** ****** ****.

Fever ****** ***** ******

***** ********* ******** ********** should **** *****, *** other ******** ********* ** how **** *** *** how **** ** ***** camera ***** ******. ** the ****** **** **, Dahua ***** ******** ** generate ************* ******* *** if ** **** ***** camera ***** *******, *** company *** *** * quick ******** ** *** overseas ******. ***********, ********* fever ****** ***** **** helped ***** *********** ******* a *********** ******.

Investor ****

** ** ***********, ***** has *** *** **** or ******** ***** ** hold ** ********* **** discussing *** *********** ** H1 ****. **** **** update **** ****** ** important ******* *** ****** in * ****** ****.

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