Dahua's 'Profits' Investigated

Author: John Honovich, Published on Jun 15, 2016

Dahua's profits are up 100%+, defying common sense and industry trends.

We hired a China economics expert to investigate the source of those profits to better understand what is truly driving the world's second largest video surveillance manufacturer.

*****'* ******* *** ** ***%+, ******* ****** ***** *** ******** ******.

** ***** * ***** ********* ****** ** *********** *** ****** of ***** ******* ** ****** ********** **** ** ***** ******* the *****'* ****** ******* ***** ************ ************.

[***************]

Financials **********

***** ********** **** **********, **** **% ******* ****** *** ***% ****** ********.

*** ******, ** **********, *** *** **** *****, ******* **** Dahua ****** *** ***** *********** ** ****** *** *** ****** more ****** **** *** **** *** *****. *** *****'* **** competitor, ********* *** ******** **** ************ ******* ********.

Profits ************

*****'* *******, *** **** *******, *** *** ******** ******** ** **** operational ******* *** ****** *********.

**** *** *** ****** ***** **** *** ***** ********* ******:

  • "**** ** ******** ** ***** *** ** **** ****** ***** from. *** ******* ************ ** ************* *****-*************** ** ***** *** ****** *** ********* **** **% ** nearly **%. **** ** ******* *** ****** ********** *********(***** ** ******** ** ******) ************* *********. ***** ***** ********* **** ******** *********, **** ******* **** were ******* ** ***** *** **** **** *** ** ***** rates. **** ** ********* ******** ** ******** ** * ****** of *************. ***********, ********** *********, ********** ***** *** **** **** the ********** ** *** ******* ********, ** ******** ** ********."
  • "*****'* ********* ******* **** **** ******* *** * *** *****. ** ** 2013, **** *** ** *********** ****** ** **.*% ***** ***** it ** *.*% *** ***** ** ****** *******, ********** ** fall."
  • ** *** **** ****: "**** **** ********* ** ***** ******* ************ **** ** **** are * **** ******* *** ******* ****** ** ****** *********  and ***** ** **** ** ******. ************, **** ** **** are * ****, **** ****** **** ****** ********* ** **** lots ** *******."
  • "*** ***** ***** ** ****: ***** ****** ******* ******** ****** by ***-********* *******.  ** *** ******* ***** ***-********* *******, *** drops **% ** * ***** * *****. ***** *** ******* margins, ******* ***, *** *** ************* ******** ** **** *** EPS **** ******* **********, **** **** ******* * ********* **** worrisome *******."

***** ******, **** ****** ******** *********'* ********** *** *** *** see ***** ****** ***** *** *********.

Dahua *******

**** ********** ***** ** *****, ** ** *** ****.***** ** ******* ************* **********, ** ********, **** * ******* ** * ******** **********.

***** ***** ** *****, ** **** ** *** ******* **** that ******* ********* *** *******, *** ******* ***** ***** *** future ** *** ******* ************ ******. ** ** ***** **** carefully ******** *** ***** **** ******* ** ***** *********.

Comments (14)

** ******* *** ******* *** ******** ** ** *********** *******? Does ** **** ********** **** ***** ******* ****** ** ***** upwards ** ***** *** ****** ** ** ***** ********** "*****" continue ** ********* *** *******? ***** *** *** ****** *** too *** ** ** ******* *** ** **** *** ******* able ** ******* **... * ***** ** **** ******** ********.

*** *******, *** **** *******, *** *** ******** ******** ** true *********** ******* *** ****** *********.

*** *** ******* ****, **** ** ***-**** ******?

*** *** **** ********, ** ****?

*** **** ** ***** ******** ** ****** ***** ** ********, shouldn't ******* ** ****** ***?

** **** ***** **** *** *** ****** ***** ** ******** but ******* **** **** **** **** ***** ** ******** ** the ******.

***** **** ***** ** ***** (*** ***** ** *****) **** are * **** ******* *** *** * ********** ******* *******. They ****** ******* ******* **** **** **** ** *** ** they ***'*, ** *** **** *** **** **** **** ** profit ** ***.

***** ********* **** **** * ***** **** ** ****, **** a "*****" *** ****** ***** ********* **** ****** ** ****-****** or *** ***** ****** *** ** ***** ***** *** ******* or ***** *** ********** ** ***** ******** ********* *** *** cloud *** ******** ** ****** *********.

** **** ***** **** *** *** ****** ***** ** ******** but ******* **** **** **** **** ***** ** ******** ** the ******.

** **** ******* ** ********** ****** * ******?

******, **** **** "**** *******" *** **** *** "******** ** continue".

*'* *** * ********* ****** ** * ***** ** *****.
**** **** * ********** **** *** "*******" **** *** *** will *** **** **** *** *** ****** *** ********* **** they **** ******* ** *** ******.

*** **** ** **** *** ***** *** *** *** **** get ******** *** **** ******... ** **** **** **** **** have ***** ***** ****** ** ***.

******* ***** **** **** *** ******** ***** *****. ** ** they **** ** *** **** **** **** **** ** *******. This ** **** ********** *** ********* ** **** ** **** risks ******* ** ******** *****.

** **** ***** * ***** * ****** **** **** *** let ******* **** **** **** ********* ******* **** *** **** the **** :)

**** ********** ** *** "******* ******" *** ********* *****.

*. *** ***** *** ******/**** **** ***-********* ********** (***-********* ******) for ** **** ** *.*** ***, ***** *% ** *** total *****-*** ****** **** ***.

***** *** *** *** *** **%?

*. ***** *** ** ******** ** ***-********* ****** **** **** Q1 ** **** **. *** ** *** *** ***********.

** **** ***-********* ******: *.*** ***

***. *********: *.*** ***

*** ** ***** ******* ********: *.*** ***

** **** ***-********* ******: *.*** ***

***. *********: *.*** ***

*** ** ***** ******* ********: -*.*** ***

*. *** ***** ******** ** ************* ** **** ** ** a ****** ** "*** ****" ** **** **.

**** ** ***** ******: **** ***

**** ** ***** ******: *** ***

**** ** ***** ******: **** ***

***** *** **** *** + ****** ** **** **. **** Q1, ******* *** ************ ***, **** ****** *** ******* ********* from ****.

**** **, ***, *** * "*** ****", ******* **** *** Dahua ********** ************ **** **** ******* **** *** ** **** when *** **** ****-**-**** ******* *********** ******* "******", ********* **** see * *** **** *** ***** *** ******* **** ****** stock *****.

**** *** * *** ****** ** ******** ** *****'* "*** Bath":

*. ** **** *** ***** ******** ** ********* ******* (********* loss ********** ** ********* *** ***** *****; ***** ** ***** subject ** **********'* ************.)

*. *** *******, ***, *** *** ******** ****** *** ******** principle *** ***** ****** **** ** *** ****** ******* ** this *******, **** ** ********* *** *****;

*. ***** *** **** **** ** ********** ******* ** ****** advantages ** ********** ********** ************, **** ** ************ ** ********* R&D ***** *** ******** *********** **** ***.

**********:

**** *** ****** *** ***% ******** ** **** ** ** simply *** ** *** ************ ******* **** **.

**** **, ***, *** * "*** ****", ******* **** *** Dahua ********** ************ **** **** ******* **** *** ** **** when *** **** ****-**-**** ******* *********** ******* "******", ********* **** see * *** **** *** ***** *** ******* **** ****** stock *****.

****** **** **** ** *** ***** ******* ** **** ******** of * *** ******* *** ** **** ****.

** **** **** ****** * *** ****, **** ** ***** imagine **** *** ******** **** ************* ******, *** ************* ******** lower. *** *** ****** *** **** ******** ****, *** **** reason *** *** ****. ******** ** *** **** ******** **** at ****, ** ** * ****** * ****** ******** ** unhinge ********* *** ** ***** ********** ** ****** ******** ********* by ********* ** ********** *** ******?

*** *** **** ****** ** ******* ** * ******? *** then **** *** **** **** *** ****** **** **, **** a **** ****** ***, ** **** **** *** ** ***** under *** *** ** *** ****?

...*** ***** ********** ************ **** **** ******* **** ***.

** ******, * ****** ****** *** *** **** ** ********** trashes * *** ******, *** ***** ** ***** ******* **** are *** ** *** ***** ***** ****** *** **** ******. Or * ******** *** ****** *** ******** ***'* **** ******* to **** *** ****** **** **** ******.

**** ******* **** ***** ** *** ******* ** ********* *** the **** **** ***** ***** ***** **** ** ********* ******** by *** ********* **********, **** ***** *** *********** "****" ******* reinstates *** ********.

*** ** *** **** ** *****, ** **** ** *****/*******/********* who **** ~**% ** *** *****. ** **** ************ *** likely **** ********** *** ********** ******* *** *** ****** ** likely ******** ** **** *****.

*** **** **** *** ********** **** * **** *** ***** preclude ***** ********* *** *** ****. *** ***** *** * totally ********* ***** ****** **** ***** ************ *** ********* ******* tradings.

** *** **** ** *****, *** *** ******* *** *********** that ******** *** ******* ** ** ********** *** ******* ******** by ******** *** ******* ** *** ********** ******?

*********, *** ******** ********* * *** ****. *** ********* ** provision, ***** ******* *** *****. ******* ******* *** *** ** 2015 ** ** *** ********** ** **** **.

**** **** ******** **** ********** ** *****, * **** *** accounting *** ********* *** ***** **** *** ************; *** *** sales **** ******** ** *** ****** ***** ****** ** ****-**** relationship **** **** ***** ***** ** *** ******* **** * period ** ****; *** **** ****** **** **** *********** ** pre-paid *******.

******** * **** ******* *** *** **** ***** *** ******** and ******** ******* ***** *****, *** ** *** ***** *** still ********* *** ********* ** ****** **** *** ************ ** new ***********, ** ***** ** ***.

*** **** ****** ******* ** ** * ******/********** ** **** is **** *** **** ** ********* *********. ***** *** *** get *** **% ** * ***** ** ***-********* ****** **** total ******?

** *** **** ** *****, *** *** ******* *** *********** that ******** *** ******* ** ** ********** *** ******* ******** by ******** *** ******* ** *** ********** ******?

** ** ******* *** *******, ** ***** ****** ******* ** buy ** ******* *** **** ****** ** *** ***** ********?

****'* *** *******, **** ******* ******* ***** *** ** ************ without ** ******'* **********. *** **** *****'* **** ** ** to ** ****** *****

**, ****** **** *** ***** ** *** ******* ** *** pre-dump *****, ***** **** ** ********* ***, ** ***** ** least, *** ******* **** *** ******** ****** ** *** ********. Sure ** ***** **** **** ******** ********** **** ****** ** pre-bath ****** *** *** ***** ***** **** ** ***** ** was, ** ** ***** ** * ****, *** **** **** he's *** * ****** ** ***** ** *% ******, *** tarnished *** *******'* ********** **********.

** ***** ** *** ******* *** *** ****** ***-**** *** bought **** **** ****-****? *****, ** ***** **** ** ** a *****, ***** ****-*** ***-**** ** ******* ******* ******** ****** you ***** ***.

* ***'* **** ***** *** **%, *'* **** **** **** answer **** ******.

*** ******* ******* *** ** ***** ******* ***. ******, *** stock ****** *** ***** ********** ** *** **** ** ******.

** *** **** ****, *** ******** ** *** ******* ***** be *********** *********. *** **% ******** ** ***** ******* ** 2015 ** ********* ** **** ** ***** ** **** ***** jobs. *** *****.

*** **** ** **** ***** *** ********** ********** ******* *** Dahua ** ***** * ********** *******.

****, ********** ***'** *** ****** ***** *****, **'* **** **** in **** ********** **** ***** *** ********* ** **** **** 50% ** *** ******* *****, *** ******** **** ************* ********* the ***** ***** ** ******** ** **.

*** *** ******** **** ***** *** *******'* ********* ******** **** you **** * ****** **** *** *** ****, ** *** you ******* ****-***?

** * ******* ****, ** *****, *** *** **** ******* as *****?

**, *** ****/******** *** ******* *** ***** ****** ** ******* expense, * ******* ***** *******. ****** ** *** ******* *** same ***** ** ******* ***. *** *** **** ** ** is ** ******** *** ******* **** *** ******** *** ******** future ******* ** *** ******* ****** * ****.

*** ********* ****** **** **** **% ***** ******. ** *** case ** *****, ** ****** ***** ** ***** ******* *** for *** ***** **** ** ****** *** ******* ************ ***. No *** ******* ** ***** *** ***** *****. *** **** of *** **** ** ****** ** **** *** ****** ** one ****** ** **** ***** ******* ***** **** ****. *** stock ***** ********** ** ****** *** ************ ** *** ******* management. ****'* ** ******** ********.

***** ***, ** ******* **** *** ******* ****** ****** **** you **: *** ****. *****.

*** *********** ********:

******** * ******* ********* ********* ******** ** ****, ***** ** meetson *******, which of results would you think the market would react the most positively to?

**:*****:******:*****:****

**:******:******:*****:****

**

**:*****:******:*****:***

**:******:******:*****:****

*, ******** **** *** ******:

*'* *** **** ******* **** ******* **/*** ** ******* **. According ** ****, *** ******* ******* ** *********, ***** *** can *** ** ************** * **** *********** *********** **** * ***** **** *******, ***-********* ******* *** 161m *** *** ***-********* ******** **** *.* *******. ***** ** not * ******** ********* **** **** *** ***-********* ****** ** I ********** **** ***** **** ***-********* ******* ***** ***-********* ********. The ***-********* *** ********* ****** ** *** *** ********* ** total ****** *** **** ** ******** ********. ********* ****** (*********** in ****) ** ****** ** *********; ************ ****** ** ****** as **** ***. ******** ***** *** ***** *** ** **** RMB. *** ****** (*********** ** ******) ** ** ** ****** as **** *** *** * ********** ** **** **%. ***** expected ******* ** *** ****** **** ** ***** *** ******* items, **** ********** ** ***** ****** ** ** **********. *** reason * ******* **** ** ** ********* **** ******** ****** operating ****** *** ** *********** ** ***-********* ****** ********* ****** closely ** *** ******** *** ****** ******.

** *** **** '*** ****' ********, *** ********:

**** ** ********** **** ****** **** ********. * ***** **** however * ****** ** ******. *****, **** ** ********** ****** practice *** ***** **** **** *********** **** ****. ******** **** rush ** ***** ******* ** **** *** ****** **** ***** there ** * *** ******* ** ****. * ****** **** this ** * *****. ******, * ***** ** ** ******** we *** ********* ** **** ******** ***** ****** ** **** lots ** ****** *********** *** *** ******* **** *********** ** start ******** "******" **********. *** *********/**** ******* **** ** ****** correct ***** *** **** **** ******* ******* *****. *** **** reasons ******, * ***** ** *** ** * ******** ******* unless ** ****** ** ** * ************* ******** *** *** this ***** ********** ****** *******. ** **** * ****, *** me *** * ****** *******. ****** ***** ** *******, ***'* assume *** ****** ****** ** **** *** ** ** **** and **** ** ****. **** ** ** *** **** **** their ***** ******* *** *** ******* *** ******* * ****** between **** *** **** **** ********** ****** *** *******? *****, most ********* ***** **** **** ** ******** **** ***** ********. They **** **** *******, **** **** ** ** **** **** for **** ** **** *** **********, ** **** **, **** they **** ***** ** **** ***** ********. *** *** ***** in *** ****, *********** ***, *** ***'* ***** ***** *** revenue ** **** ********** **** ****. ** *****, *** ********* is ******** *****. ** ****, ** **** ** *** ******* accounting ******* **** ******* *** **** ***** ********** *****. *******, it ***** ** *********** ********* ** ******* ****** ******* ** an ******** *** ********* **** **** *** ***** ********* ***********.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Best and Worst ISC West 2018 on Apr 16, 2018
ISC West 2018 had strong attendance, modest overall new products, and a surge in Artificial Intelligence marketing. First, here are 20+...
Hikvision Hires Ex-Milestone Head To Lead Global PR on Apr 06, 2018
Hikvision has PR problems. From its failed attempt at hiring a crisis communication writer to their failed anti-IPVM blog series to the increasing...
Hikvision: Chinese Government "Exert Significant Influence Over Our Business" on Mar 28, 2018
In an investor prospectus, Hikvision disclosed that the Chinese government, as their controlling shareholder: will continue to be in a position...
US / China Tariffs Impact on Video Surveillance on Mar 23, 2018
On March 22, 2018, the US issued a Presidential Memorandum on the Actions by the United States Related to the Section 301 Investigation, with 3...
Dahua Global Launch LeChange on Mar 20, 2018
Dahua is getting into the consumer video surveillance market globally, with "LeChange", an offering long available inside of China is now being...
Free Manufacturer Trip To China - CCTV.Net / Univew on Mar 15, 2018
Pack your bags? 'Closer than you think'? Well, a non-stop flight from NYC to Shanghai is 15 hours plus another 100 miles to Hangzhou...
Panasonic Selling Off Security Camera Factory on Mar 14, 2018
Panasonic is OEMing cameras from Dahua, as IPVM testing confirmed in 2017. Now, Panasonic is selling their security camera factory, according to...
Hikvision Chairman Joins China National Government (NPC) on Mar 13, 2018
Hikvision Chairman and Communist Party Secretary Chen Xongnian has joined the People's Republic of China's government - the National People's...
Chinese Government Builds Far-Reaching, Allegedly Corrupt, Surveillance System in Ecuador on Mar 13, 2018
Thousands of Chinese security cameras, including many made by Huawei, are watching Ecuadorians around the clock thanks to an integrated emergency...
Avigilon Breaks $400 Million Revenue, Quadruples Profit, Weakens Competitiveness on Mar 07, 2018
The last annual Avigilon financials are here. With the imminent Motorola acquisition completion, Avigilon will cease to be an independent publicly...

Most Recent Industry Reports

Worst Access Control 2018 on Apr 18, 2018
Three access control providers stood out as providing the most problems for integrators. In this report, we analyze the answers to: "In the...
April 2018 IP Networking Course on Apr 17, 2018
Only 2 days left to register for our IP Networking course. Register now. NEW - 2 sessions per class, 'day' and 'night' to give you double the...
Axis VMD4 Analytics Tested on Apr 17, 2018
Axis is now on its 4th generation of video motion detection (VMD), which Axis calls "a free video analytics application." In this generation, Axis...
Arecont CEO And President Resign on Apr 17, 2018
This is good news for Arecont. Arecont's problems have been well known for years (e.g., most recently Worst Camera Manufacturers 2018 and starting...
Strong ISC West 2018, Says Manufacturers, GSX / ASIS Expected Weaker on Apr 17, 2018
Manufacturers say ISC West 2018 was strong, continuing the trend we have seen in 2017 results and 2016 results. However, those same 100...
Key Control For Access Control Tutorial on Apr 16, 2018
End users spend thousands on advanced systems to keep themselves secure, but regularly neglect one of the lest expensive yet most important aspects...
Best and Worst ISC West 2018 on Apr 16, 2018
ISC West 2018 had strong attendance, modest overall new products, and a surge in Artificial Intelligence marketing. First, here are 20+...
Alarm.com Business Market Expansion on Apr 13, 2018
Alarm.com has millions of subscribers, but the company has traditionally been mostly a residential/home focused offering.  ADC's new Smart Business...
GDPR For Video Surveillance Guide on Apr 12, 2018
The European Union’s General Data Protection Regulation (GDPR) comes into force on May 25, but there is much confusion and no clear guidelines on...
Axis Launches Mini Concealed IR PTZ on Apr 11, 2018
Axis has been a laggard in releasing IR PTZs. While the company released a laser focus PTZ (the Q6155-E tested) until now Axis has had no PTZs with...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact