Hikvision's Largest European Distributor Making Huge Profits

Author: John Honovich, Published on Jul 04, 2016

No money to be made in distribution?

The race to the bottom is destroying profits?

Well, not for Hikvision's largest European distributor, DVS

In this report, we review their financials, contrasting them to Tri-Ed, Ingram and Norbain to show how profitable the DVS / Hikvision combination is and what this means for the market.

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

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

****, *** *** *********'* ******* ******** ***********,***

** **** ******, ** ****** ***** **********, *********** **** ** Tri-Ed, ****** *** ******* ** **** *** ********** *** *** / ********* *********** ** *** **** **** ***** *** *** market.

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

DVS **********

********** ************ ********* ** **** ****. ***** ** ****, *** *** **** *******, ********* *** their *** ********** ***** *****. ***** **** **** (*.*., *******) to ********* ** **** *** ******* * ***** ********* ****.

***, *** ******* ************** ***** ********* *** ** *** ** their **** ***** / ********* *********.

Financials ********

*** ******* ******* **** ********* *** **** *** ******** *****, ***** **** £*.* ******* ** £**.* ******* (*** *** **** **** ****** ********* ******). ***** **** ******* *** *** *********, *** ***** ****'* balance ***** ********* * *** **** ** ******* *** ******* even ** *** ***** **** ******** ********* ******** ** *** pre-Hikvision ***.

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

**** ***********, ***'* ******* *** *********** *** * ***********. *** fiscal ****, *** *** **.*% *** *******, ***** ***** ** great *** * ************ (*.*., ****** **** **** *** ** 2015) *** ** ********** ******* *** * ***********. ** ********, ****** *****'* net ******* *** ~*%, ***-**'* (**** ******** ** *******) *** under *%, *******'***** ********** ***** **** ** ***** *** **** ***** *** *** get ** *% *** *******.

40%+ ******* *** ***

************ ******* ****** *** ******** ******** ** ********* ** *** ** - **% ***** (*.*. *******) *** ** **** **, *** markups *** **** ***** (******'* ******* *** ***** **%, *.*.).

** ********, ***' ******* *** ****** **** *** ** ********** 43% (**** £**.* ** ***** ****** £*.* *******). ** ********, ** ****** ****, ***** ***** **** as * ********* ***********, **** *** ********** ** ********* ***** *** DVS **** *****, ***' ****** *** ** ****** ***** ** 29%.

*******, ********* ** ******* ********** ******* / ******* *** ***. 

Analysis / ******

**** **** ** *** **** **** ** *******, ** ** not **** *** ** ******* ********* *** ** **** **** than ******, ** ***** *** ***** ***** **** ************ *** competition ** *** ** ****** *** ********* ************.

*** **** ****** ***** ** **** ********* ** ********* *** products ** * **** *** ***** *****. **** *** *** **** from * *** ***** ***** **** ********* ** *** *** could ******* ****** **** *******, ********* **** ** ***** ******** that ************* **** ********* *** ***** **** ** ********* ************ that ***** *********** *************.

*** ***/*** ** **** ********* ** ******** / ******** *** to **** **** *******. ** *** **** ****, *** *** ******* speak *** **********, **** ********* ***** ************* ** **** ********* hard, ***** ** ******* ********** ** *********. ** *** ***** hand, ** **** ***** ******* ********* ***** *** **** ********* is ****** *** **** ***** *** *******, ** *** ******, are ** *** **.

Comments (18)

***, **** ** **** ******** ** ** **** **** ***** financials. ** *** ****** ******, ** *** *** **** ****** details ** ************ *******.

**** ** ********* ** *** ****** **** (******* ). ***** Dahua *** *** ************ ****** *** ******* **** **** ****. Also, ** ***** **** ** ******* ** ******* ***** ** a *** ***** *** ***** ** ******* **** ( ***** i ***** ******* ***** ******** ***** ******* ) .

*, *** **** *** **** *** ********* ***** **** *** profits ****? ** ********* ****** *** ************ **** **** / low ******* ****?

* ** **** **** *** **** **** ******. *** **** for **** **** *** ****** ** *** ********* ** **** price *****... ****** * **** *** ** ***** ** ** than *****. **** *** ******* *** ***** ** *** **** stuff ***** ****, *** * *** ** "********" *****, *** i **** "*** **** *********" ** ****/*****.

*****, **** ** **** **** **** ************ ** * *** more **** ** ***** **** *** (*********) ***** ** ** : ** ** ********* *** **** ( ***** ***** *** all ), ** ** **** **** ******* ( ***** **** RMA *** ** ********* ******** ***** ), ***-***** **** ***. There ** *** * *** ** ****** ** **** ***** a ********* *** ****** ** * ******* *** *** ********, other **** *** *********** **** ****/**** **.

******* ** ******, * ***** ******** *****, *** ****** **** very ***** *********, ******** **** ********* *** ************ ***… *** still **** ***** * ***** ****** *** ****!!!

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

****, **** *** **** *** **** ** *********'* ******* ****** of ******? *** *** ***** ****?

***** ****, **** * **** ***** ***`* ****** *** ************ as **** *** **********, ***********… ** **** ***** **** ********. i ***** *** ******** ** ***** *** ** *****, **, let ** **** **** **** ******* ** *** ***** ***- price, *********, **** ***** ***** -****** ** *******... ******** ** Hik ** ***** * ***** ** ** **** * ***** etc. **** ** **** * **** ***** ****** ** ******** special * *** ***** **** ****** *******

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

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

  • **** ******* ** *** * ***** ****** ** *** ** distribution *********
  • ** *** ***** **** **** ***** ****** *** **** *** them ****** **** ******'* **** *** ******, ** *** '**** big *****'
  • *** ** **** *** ******* ****** ***, ** * *****-*********** you ***** *****, ** ***** **** ****** **** **** ** very, **** ******

**, * ***** ***** *** ******* *** ****. ** ********* prudent ** **** ** ***** ** **** *****.

*** ** *** ***** * ******, ** ******* ** **** their ********* ***** ***** ** ***** ********* ** *** '******' them. ** * ***** **** **** *** ********* ********* **** to ****** *** ****** *** ****** ***** *** ***** **** they **** ** **** ** **** *** ***** **** *** now? *****? ** *** **** *** **** *** **** *** thing ***** (********* * *** *****), ** ***** ****** ** they ***** *** ******* *** ****** ******* ****** ***** ******* as **** **** **** ******* ******* ************ *******. ** * missing *********?

**,

**, ***'* ***** ******** ** ***** ****** ...**** ****** **** of *** **********.

** ***** **** ** * **** *** **** ** ****** the ***** ** **** **** ** **'* *********, *** ***** it ***** ** *****. ** ***** ******* ****** ** *** more ****** ***** ** *** ****** **** **** **** ***** be ***** ** ***** **** **** * *** ***** ****.

** *** **'* *********; * **** ** **** **** ** at ***** *** ******** ** *** **** **** **** ******** all ***** ************ ******** ******** ****-**-**** *** **** **** *** to **** ***** * ******* ********** ******, **** *** *******"** *** ** *** **** ** **** *** **** *** spoil ** *** ******** *** *** *** ****** ***"

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

*. ** ***** ******* **** *** ** *** ******* * better **** **** *** ***** *** *********** *******, ********* *** up-front ******. ******* ** **** **** ****** ***** ** *** HIK *******, ****** *** *** *** *** **** ******* *****-****, perhaps **** *** **** ***** ******* ** ******/**** *** ******* improved ****-*** ****** *****.

** ***,

** *** (******** *******) ** ** *** ***, **** ***** interesting ******* **** **** **** ****** ******.

** ******** ******* (*** **** ** ****** ** ******** ******* as * **** ** ****** *********** ** *********) ** **** I ***'* *** ********* ***** ****** ** *** **** ****** and ****** * ***'* **** **** **** **** **** ** direct ** *** **** *********** ******* **** *** ** *** the **. ** *** ** * *** ***, *** **** reported ****** ********** ** $*.*** **** ********* ** ***** ******** globally **** ******** *** ********** ******, *** **** ******** * distribution ***** ** *** *** ************.

********* ****** ******, **** * ***** *** ** **** *** adds * *** ** ***** ** *** ************ ***** *** has ************ ****** **** ** *** ****** ** £**** *** head ** ***** ***** ** * ******* ****** **** *** competitors ***** ***** ********* ****** *** ********* *** *******. * would **** *** **** **** ** (***) **** ********* ** in *** **, ****** **** *** ********** ** **...***** *** times ******.

* **** ********* **** *** ******** ******** ** "**** ***" most ** ** ******, ** ******** ** ** **** ****** and *** ***** ******* ***** *** ***. **** * *** up ** ******** ** ***** ***, ** *** ****** ** aim ** ****** ****** *** *** ** **. *** ** various *************, **** **** *** ***, * **** *** ******* at **. * ****** ** ***** ** ** *** ****. The ******** *** **** **** **** ** **, *** * have ********** ******* ** ****** ****** **** ** *** **** friends ** ** ****, *** *** **** *** **** ** enjoy * ****** **** ** **** **** **** ** ****** time *** *******.

* ***'* ******* ** *** ********* ******* ** *** ***, but ** *** ******* ******** **** ***** ** * **** to ** **** ******, *** ****** *** **** **** ** public ***********, ** ** ******** ***** ** *********.

***** *** ** *** ******** ******** ** *** ********, * feel **** ***'* ******* ** **** *** ********* ******* *** and **** ** ** * ****** ****** ** ****** *** best **** ** *** ******** (***** **** ******* ********* ** the ***** ****, *** ***, ** *** **** * *** of ****). ****** * ** ********* ******, * ** ********* believe **** ** ** ***** *** ****** *** ** *** can *** *** ***** **** ******* ** *** ***** *********, together ** *** ***** **** *** *** ******* ********. **** won't ****** ** *** ** *** **** ** ***** *** really *** ****** ** ****.

***** *****

*****, ****** *** *** ******** *** ******** ** **** **********!

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

* ***** **** *** **** **** ** (***) **** ********* on ** *** **, ****** **** *** ********** ** **...***** how ***** ******.

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

** ********: *** ********* ** *** *********, ********* ** *** better ***** *** ***** ** **** ****** ** ***** / sell *********, ***** ***** **** ***********. ***** ****, ** *** think *********** *** ******* **** ***** ******* / ******* ** sustainable?

** ****,

*** ***** ****** ** **. *** ********* ** *** *********, more *********** **** ***** ******* ************, *** ************ *** **** imports ***** **** *** ******* ******** **** ****** *** *** UK ********* "******" **** *********** **** *********** ******** ******* ********* to **********. *******, * ***** ****** **** ******** ** ******** so * ***** ******* ******* *** ****** ******** ** **** the ********* ****** ***** *** ********* ***/ ** ***** ************ (possibly ******* ************ ** * ****** ****** ** ****). **** being ****, *'* **** *** ** *** *********/ ***** ************ are ********* **** ******** **** **** **** ************ ****** ** one ** ***** ****** ** ***. * *** *** ***** be *** **** ********* ** * *** * ************ ******* without ****** ** *** ** *** ******* "******" ** ****.

*****

*****, **** ********, ******! ***** **** ****** **** *** *******!

** ***** **** *** * ***** ********** ******* ***-**** ****** for ********* ***/** ***** ** ******** ***** *** *** **** of *** *****?

***** *** ******* ** ****** ** ***** ** ** *** rest ** *** *****?

* ***** *** * ***** ******** ******* ****** ********* *** Hikvision.

*******

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

*** ******* ** *** **, ~**%, ***** ******* *** ******** down **** **.*% ** **.*%, ************** ******** / ******** *** way ** **%. *** ******* **** **** **** ~**% ** 11%, ********* *** ** *** **** ** ***** ********.

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