Dahua Revenue Grows But Profits Down, Cause Unclear
While Dahua's overall revenue was up more than 12% in Q3 2020, a significant improvement from the first half of 2020, the company's operating profit is down.
In this post, we examine Dahua's Q3 2020 financial disclosures and what this means for Dahua going forward, including:
- Recovery continues as revenue grows
- Profits attributable to shareholders surge due to chip subsidiary sale
- Revenue up but operating profits down, reasons unclear
- Decreasing operating profits partially explained by financial expenses and losses
- Analysts say government spending recovery contributes to rising revenue
- Fever camera demand slow down could contribute to stagnating profits
- Internal management promotions
- Market reaction
Recovery *********, ******* *****
*****'* ** **** ******* **** **.**% YoY ** ~*.* ******* *** (~$*** million ***). ** *** ***** **** of ****, ***** ***** *.**% ******** ** ************* ** *** **** **** ***** in ****, *** ******* *** ******** performance ** ** ****, *** ***** numbers **** *** ******* ****** ** to *** *********** ** *** ***** 3 ******** ** ****.
**** ** * *********** ******** **** a ********% *** ******** ** ***** ** Q1 **** *** * *.**% ******** in ***** *** ** ****. ***** ***** *** **** ******* sales ****** *** ** **** *** last *** *****, ** **** ******** the ********.
Profits ******** ***** ***** ***** ***** *********
*****'* ******* ************ ** ************ ** Q3 **** **** ** ********** ***.**% YoY ** ~*.* ******* *** (~$*** million ***), *** **** ***** ****** is *** ** *****'* **** ** its **** **********, ***** ********* ****.* ******* ***(~$*** ******* ***). ***** ******** ***** 941 ******* *** (~$*** *******) **** this ****, ***** *** ******** ** its ** **********. ********* *** ******* from *****'* *********** ** *****, *****'* profits **** ************* ****.
Revenues ********** *** ********* ******* ****, ******* *******
*****'* ************ ****** ******** *** ********** operating ******* *** ******* ** ****** revenues ******* ******** ******* ** ****. However, **** ** *** *** ***** time ***** *** ******** ** ******* revenue *** ****** ************. ** ** 2020, ***** ******** * ******** ** sales *** ** ******** ** *******, which ** ******* ** ********* ***** usually ***** *******. ***** *** *** provide ** *********** *** **** ******* revenue *** ****** ******. *****'* ** results **** *** *** ******* ******** v. ******** ******** *** ***** ******* margins, ***** ***** **** **** ******** into *****'* ********* ***********.
Decreasing ********* ******* ********* ********* ** ********* ******** *** ******
*****'* ******* ********* ******* *** ********* be ********* ** *** ****** ********* expenses *** ****** ******** ** ** 2020. *****'* ********* ******** ********* ** 320.95% ***. ***** ********* **** ** "mainly *** ** *** ******** ** exchange ****** ** *** ****** ******** with *** **** ****** ** **** year." ***** **** ******** *********** ******* in ****** ********** ****** ** ** 2020 ******** ** ** ****, **** credit ********** ****** **** **** ******** from ** ******* *** ** *** million ***. ****** ********** ****** ***** when ******* ****** ** *** ** are *** **** ** ***. ******** exchange ************ ** ** *** ***** still **** ** ***** ** ********* give **** *********** ** ** *** Dahua ******** ******** ******* ******, *** did *** *** ************* ********* ******* grow ** ****.
Analysts *** ********** ******** ******** *********** ** ****** *******
******** *** ********* ** ***** ** driving ******* ******, ********** ** ********** projects *** **** *** ******** *** smart ****** **** **** ******* ** the ********* ** **** *** ** COVID-19**** ******* ** ***** ***** ****. ** ******* ********* ******** ****, ***** ********** *** ******** ** revenue ** ** **** ********* ** government ******* ****** *** ******** ******* on ****. *******, ***** **** ********** project ****** **** **** *****-****. ** the **** *** ******, ***** *** largely ********** *** ********, ******** **% ** *** ********** ****** domestic *********** *** ****** *-*** "****** ****" holiday.
Fever ****** ****** **** **** ***** ********** ** ********** *******
******* ***** ****** ****** ***** **** be ************ ** ********** *******. *****'* Q2 **** ****** *** ***** ****** performance **** **** ********** ******. *****'* margins, ********** *** ******** *******, *** significant ****** ** ** **** ******* of *** ****** **** ************* ***** camera *****. ***** **********.**% ***** ****** ******* ** ** 2020, ***** *** * * ***** increase **** ** ****. ******** ******* were **** ****** ** ** **** at **.**%, ********* ** ** ***** increase ***. **** ********* *** *********** and ****.
** ***** ****** ***** *** ********* to **** ** ** ****, ***** would ******** ** *** ********* *******. However, ***** ***** *** ********* *****, there *** ** ************ **** ** profits, ********* *** ***** ****** **** is *** ** ****** ** ** had **** ******* ** ****. ****** into ******* ******* ** ***** ** COVID-19 *** ******* ******* *** ***** products ********, ** ** ********** ** believe **** ***** ****** ***** ** Q3 **** **** *** ** ****** as **** ** **. *******, ***** has *** ******** ******* ********** ** their ***** ****** ***** ** ** 2020 *** *** ***** ******** * geographical ********* *** *** ***** ***** would **** **** ***** ** *** current ***** ** ***** ****** ***** and ******.
Dahua ********* *** ****** ********** ************
***** *********** *** ****** ********** ***************** ********* *** ** **** ******. All ** ***** ************ **** ******** promotions ****** **** ********** ******* ** from ***** *********. **** ** *** first **** ***** *** ********* *********** promotions ***** * **** **********, ********* the ***, ******** *** "******** *******" ** ** ****.
Dahua ***** ********* ** ** ************
*****'* ***** *** ******** ******* ********* in *** **** ********* *** ** financials ******* ** *******, ******* **. This ****** ** **** ******** **** and *************.
Investor ****
** ** ***********, ***** *** *** yet **** ** ******** ***** ** hold ** ********* **** ********** *** performance ** ** ****. **** **** update **** ****** ** ********* ******* are ****** ** * ****** ****.
** **#*,
* *** ***** **** ********* ***** from. ******* ******* *****'* *** ****** attributable ** ************ ** ********* ******/******, however, *** ****** ******* **** ******** Dahua's ******, ***-**** *********** ** ***** Microchip ***** ******** *****'* "*******" *************.
** * ********* ** *** ******, Dahua **** *** ******* *** **** the ******** **** ** *** ********* subsidiary, ***** *** ******** ** **'* financial *******. ** *****, ********* ****** one-time ********** ******* ** ***** ***-**** profit. ** *** **, ********* ***'*. What's ********* *** ******* ** *****'* sales *********** ** ***** *** ****** after ********* ***-********* ***** *** ****** because ** ***** *** *** *****, one **** **** ** ***** **** a ******* *** ******* **** ******* part ** *** ********. ******* **** not ****** **** ****** (*** ******* RMB) ********.
******* ******* **** ******* *** ********* often **** ******* *********** ******* ********* concepts **** ** ***********, ********** ********** English *********** (*** *******, *** *** profit ***** ***-********* ***** *** ****** concept), ** **'* ****** ** **** at *** ***** *******'* ******** ********* report, ***** ** **** **** ******** to ** ********. *** *** **** an ******* ******* ** *****'* **********. *************, *** *** **** ** and ****** ********* ** *** ******** stock ******** ** **** ***** ******* and ************* ***** ****** ** ***********.
********* ** *******, ********* ****** ********* from *** ******* *** ** *,*** million *** ** ** ****.
******.** - ******** ***** ********** **., LTD. ********** | *******