Hikvision Strong Domestically, International Business Struggles

Author: John Honovich, Published on Jul 25, 2018

Hikvision's H1 2018 results are out. Overall revenue growth has sharply dropped, with the company acknowledging their "facing geopolitical headwinds". Hikvision was hurt by Hikvision International (i.e., 'overseas') business but buoyed by the protected domestic market.

In this note, we examine:

  • Steep fall in gross margins
  • Sharp rise in sales expenses
  • Challenges and priorities for Hikvision going forward

*********'* ** **** ********** ***. ******* ******* ****** *** ******* *******, **** *** company ************* ***** "****** ************ *********". ********* *** **** ** Hikvision ************* (*.*., '********') ******** *** ****** ** *** ********* domestic ******.

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  • ***** **** ** ***** ********
  • ********** *** ********** *** ********* ***** *******

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Financial ********

********* ************* / ******** ******** ******** * **** * ***** drop ** ***** *******:

**** ** * ***** **** ** ***** ****** ********** **** to **** ****** * *** ******, ** ****, *** ****.

*** ******** **** *** ********* ** **** ***** ******** ******** (where ******* *********** *** *********** ******), **** ** * ******.

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Exhange ***** ******* *** ** *** *******

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Sales ***** ** *************

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Revenue ****** ***** ***************

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****** ** ******** ****** ****** ** ******* ** ******** ******** regional **********.

通过采取有针对性的区域策略努力保持收入的稳健增长

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Overall ******* ****** ***** ** ** **

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Construction ******** ********* ***%

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Net ******* ***** ******

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AI ******* #* ********

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

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Roller ******* ***** *****

**** *** **** ****, *********'* *****'* **** *** **** * roller *******, **** ****** ******** ** ****, ******** ** **** turn ** ****:

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Future ** ************* ********* ********?

** *** *** ****, ********* *** ****** ** ***** ** continue ** **** *** ************* ******** ** ***** ******** ******** dominance *******. ** *** ***** ****, ****** ********* *** ******* the ***** ****** ******* *** ****** *** **** ** ******* expenses, ** **** **** ***** ********** ******** ** ****** *** losses ***************.

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Comments (13)

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

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*** ********, *.*. ******** **************, ***** ** ***** *** ********** owned, *.*. *********

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*********, **** ******* *** *** ********* ** ******** *** ** clearly ********* ********* **** ***** ******* ******* *** ***** ********** offerings.

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********* ****** *********: ******* ******* *****'* ***** ** ******* $** Billion ****** ****

** ** ********* * ******** ******* **** *** *********** ** the ******** ** *** ***** ***** **********.

*******, ** **** ******* ********* ************* **** ******** ****** ("* ********** ******** ** ******* **** *** ******** ********** ********") and ************* **** ("************ ******** **** *** *.*. *** ****** on ******* ***** **** **** ** ******* *** ********** *** clients.").

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

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

********* *** ************* ***** **** * *****. **** **** **** "completely *********** *** ***********" ** "****** ****** ******** ** *** whoopin"

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

*** *** ** *** ********* ***** ** *** **** ***, I *** **. *******, ***** ******* **** *** ******** ** an "*** *******". **** **** ***** ***** *** ******** ** and **** ***** ******* *** ********, ** ***** ***'** ********** to *** *** ****** ** *** ********. **'* *** ***********.

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

*** ****** ** *** ************ ******** ** ******** ******* ***** to ** ****.*** ******* ****** *** **** ******** ** **** ********* *** regions *** ** ***** *********, ** ***** ***** ******

************* ************* *** ******.****,*********’* ***** ** **** ***** *******.** ** ******** **** **** * *********** ******* **** ******** for **** ****.

*** *******'* ******** *** *** ***** ***** ******** ** *********** growth ******* ** *** ***** ** **% ** **%.** *** ******** *********** ******* * ***, ** **** ****** our ************ ** ***********.

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** *******, *** ****** ** ********* ** **%.,** ***** *** ****** ** *** *** ***,***** ****** ** ********** *****.*** ** *** *** **** *** **** ** **%,**** **% ** ***,**** **** ********** ***** ******.** ****, * ********* ** *** **** ***** **** **** I **** ** *** **% ******.** *** * **** ******* ********** ** *** ****** ** ******** *** ****** ************* ******** ** *** ****** States.****, ******* *** ****** ** **** ****** *** *** **** as **** ** ** *** **** ** *** ****** ******* *****.

*** ******** **** *** * ****** ******. ***** * ******. The **** *** ***** ******* ** *** ******.

** *** * **** ******* ********** ** *** **** ** to ******** *** ****** ************* ******** ** *** ****** ******.

***, ** ****** ******** ***** ** *** ******** ******* ********** nationwide.

***** ** ***** ** ** **** ******!

** **** - *** *** ***** ************ ** *** ***** listing ** *** ******* **********? * ***** **** ** ******* that **** ******* **** **** * "**** *********" **** *** embedding *** ***** ********. * **** **'* ***** ********* (****** and ********* ****) - ** **** ** ** - ** the ********* ** **** ***-** ******* **** (***** ***-**** *** camera). * ***** ** ********** ** **** *** **** *** impact ** *******.

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

***** '*******' *** *** ********* **?

**'* ***** ********* (****** *** ********* ****) - ** **** to ** - ** *** ********* ** **** ***-** ******* line (***** ***-**** *** ******)

***** ******** **** ***** **** *****. *******, ******* **** ****,**** **** *** ***** *** / ***** (***** *** ******** effectively) ** *****.

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