Hikvision Sales Surge 40%, China Strong, US Declines But Europe Still 'Large' H1 2021

By Charles Rollet, Published Jul 27, 2021, 09:40am EDT

Hikvision has financially rebounded from the pandemic when sales briefly declined with strong 40% H1 2021 revenue growth, led by its domestic market.

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Europe sales were strong while US sales shrank, says Hikvision. Inside this note, we examine the financial report and the investors call to examine:

  • Domestic Growth
  • Overseas Growth
  • SME vs Other
  • Europe vs US
  • Hikvision On US FCC Action
  • Hikvision on Price Increases

Executive *******

********* ********* ****** **% sales ****** *** **** half-year ** $*.* *******, led ** ******** ****** of **% ** **** as ******** ****** ** 25%. ******* **** **** 40% ** ****** $* billion.

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***** *** ******** *** 72% ** *********'* *******. China, *****, **** ******* any ******** ***** ***** still ** * ***** as ***** ** ****' global *****, *** ******* Western ********** *** *********.

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********* ****** ** ** increasingly ********* ** ****** for *** ******** *******, stating *** *** *** helped ****** *** ** to **% ** *** non-China ***** ***** ********** US ********** ******* ** "unfair" *** "************". *********'* European ********** *** ****, though, **** ********* ********* such ** ************* ** *** ** Foreign ******* *********.

********* ****** **** ******** shortages ***** ******* ****** growth ***** ******** ** keep ****** ***,***** ******* ********** ****. *********'* ***** margins, ********** ********, ******* significantly (* ******) ** the ***** ****** **** ended.

Pandemic ****** ****

**** *********, ********* *********, are ********** **** * bounce-back ** ** **** compared ** *** ***** of *** ******** * year ***. ** ****, it ** ******* *** representative **** ******'* ****** is *** ****** *****.

Strong ******** ****** ****** ** *** *******

******** ***** ***** ****** 46% ** $*.** *******. Hikvision ********* *** **** from **** **** ******** (105.8%) ***** ** *** small-and-medium ******* (****) ** ~$950 *******:

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********* ********** **** ** SMBG ***** "**** ******** affected" ** *** ******** last ****, ***** ********** from *********'* ******* ** keep ****** ********** *** this ****:

SMBG *** **** ******** ******** ** *** ******** **** ****, with a low base. The rebound in the first half of the year was relatively strong. On the one hand, the business flexibility of small and medium-sized enterprises is greater. After the investment confidence is restored, the business has also improved significantly; on the other hand, despite the tight supply of raw materials such as chips, [Hikvision is] better because the ******* *** ******* ***** ********** ** *&* *** ********** [emphasis added]

*********'* ********** (***) *** Enterprise (***) ***** *** not **** ** ************ but ***** ****** ***** growth ** **.**% ** $1.18 ******* *** **.**% to $*.* *******, ************.

Overseas ******

*********'* ******** ***** **** 25% ** $*.** *******:

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********* **** **** ******** ******** "****** ** ***** a ********** ***** ****** for **" ** ******** to *** **, ***** sales **** ****** ** about **% ** ***** overseas *****, ****** ** expects ******'* ********** ** increase:

*** ** ****** ** affected ** *** ************ of *** ********, *** the ********* *** ********** of *********' ***** ************ have **** ******** ** a ******* ****** [...] A *** ***** ***, the ******* ** *** United ****** *** ****** accounted *** ***** **** of ******** *******. *** because *** ********** ** the ****** ****** *** been ***** ****,the ****** ****** *** *** ******* *** ***** */** ** ******** *******. Europe ** ***** * ********** ***** ****** *** ** ***, *** *** ********** **** ** ******. [...] Thesituation ** *** ****** ****** *** *** ** **********

**** ***** ********* ***** regions ************ *********** ** this **** ** ******. If ********* ********, ** will ******.

*** **** ** ******* on ****** ** **** long-term, ****** *** **** impose ******* ****/********* ** Hikvision, *.*. ******* *** ******** ** the ** ******* ******* Committee,***** **********'* ********* *******, *********'* ******* ** ****** determination**** *********'* ****** ****** are "*******".

US ***** ***** ~$*** ******* *** ** ****

******* ** ********, *********'* H1 **** ******* *** ~$140 *******, ***** ** the ******** ******** ***** ~$1.4 ******* *** *********'* claim **** *** ** was ~**% ** **** revenue. ** ** ****** basis, **** ***** *** Hikvision's ***** ** ******** at ~$*** *******, ********* branded *** *** (*.*., (e.g., ***,****** ** ******)

*********, *** *** ******** for ~*.*% ** *********'* total ******* (*.*., **% of *** **% ** overseas *******). ** *** FCC ** ***** ** action ***** ********* ***, it ***** **** ** a ***** ****** *********** on *********.

Gross ******* **** ** *** ** ***** ****, ****** *****

*********'* ***** ******* **** 3.46% ******** ** **** year, ** *********:

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***** ******* **** **** much **** ******** (-*.**%) vs. ************, *******:

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********* ********** *** ******* margin ********* ** ****** product *****, ******* *** impact ** **** ** clients ** ***** "********** restrained":

******* *** **** ** products ** ****** *******.********* *** ***** ***** is * **** ******** thing, ***company ** ***** ********** **********,****** ** ******** ****** the ******* ** *** aspects [******** *****]

********* **** **** *** end ** ******** ****** **** ******** *** *******:

*** ***** ****** ****** compared **** *** **** period **** **** ** still ******** ** ***sales ******* ** ******* ******* ******** **** ****, which is also one of the reasons. [emphasis added]

** **** ******* **** year,*********(********) ***** *** ***** boosted ****** ******* ************* during *** ********'* ******, particularly ********.

Hikvision **** "**** *** ***" ** "******" *** ***, ********* "**** *********"

** *** ******** ****, Hikvision **** ** **** to "**** *** ***" for *** ****** ** the *** *** ******* but ********* ** ** "unfair" *** "************", ****** business "**** *** **** difficult", ******* *** ** Yangzhong*********** ** '**** **** warfare'**** *****:

** ***** ** ** substantial ****** ** *** US's *********** ** ******* technology *********, ******-** ******** development ** ***U.S. ****** *** ****** **** *** **** *********, ******* **** ************ ** ****** ***** *** ************ ***. The FCC has not yet come into effect. It is not easy to draw conclusions, so we ******** ** **** *** ***. Although it ** ******, we also accept this result and can only work harder to make our products, business, and services better. [emphasis added]

********* ***** ** *** "very *********" ***** *** outcome ** ****** *** *******:

*** ******** ****** ** U.S. ********* ** *** company *********. *** *.*. Federal ************** ********** ******* certification ************ *** ***** in *** *********** *******, and *** ****** ** which **** **** ********** be ********** ******* ** be ******* ********.***prospects *** **** *** **** *********. ** *** **** ** various ********* **********, *** company **** ******* ********** and ****** ** *** prudent ******** **********. [******** added]

******, * ***** ********** question ** ******* *** FCC **** ****** ******** Hikvision ************** ** **** focus ** *** ****. Clarity ** **** **** take ******, ** *** FCC *** *** ** upload *** ****** ** Proposed ********** ** *** Federal ******** ***** **** starts * **-*** ******* period.

Hikvision ******* ********* ** ***** *********

******* ************ ****** ****, ********* ****** ****** ***** ************* **** ***** **** increases ** *** ******** cost *** ** *** own "**********" *** **** it ******** ** **** reached * "********** ****** price":

**** ****, *** ****** upstream **** ** ******. Raw ********* ******* ******, chips, *** ** **.We ****** **** ** *** ** ******* *** ******* ** *** ******* *****, ** ** **** **** ***** * ******, *** ** **** *** ***** [** ****]. ** ** ******** **** a **********stable ***** *** **** *******, otherwise our price increase will still lag behind the fluctuation of raw materials [...] *** ** *** ***** supply ** *** ********* such ** *****, [*********'* situation] ** ****** ******* the ******* *** ******* scale ********** ** *&* and **********. ** ***** time ** ***** *** production ********.

** *** **** ******** on *** ***** ** product ***** *********. ****** 2021, *** ****** ** years, *********'* ******** *** almost ** ***** *********. When ** ******** *** price, ** *** ********.According ** **. **’* **********, ** ****** ****** ******** *** ***** [...] It violates our integrity to customers and users. [emphasis added]

Expects ********* ** ** **** ****** **** ** ****

********* **** ** ******** the "***** ******** *********" to ******* **** *** second **** ** **** year *** **** *** overall ********* *** * "special ******" **** *** past, ***** **** ****** its ****** ****:

*** ***** ******** ********* in ***second **** ** *** **** **** ********. This is our judgment

******* *** ******* ****** of *** ********* ** tight, ** *** *** be **** ** ******* all. *********, ** *** process ** ****** ************, the ***** ** **********-***** sales *** ** *******. Compared **** *** ****, this ********* ** * special ****** ** *** moment,this ****** **** **** ****** *** ****** ****. [emphasis added]

Stock **** *** ** ******* ****** *****

*********'* ***** ** **** notably (**** *%) **** week *** **** ***** ** * ******* selloff** *** **** ********* spurred ** * ********* crackdown.

Can ****** ****?

*******, ***** **** *** US, ********* ********* ** do **** ************ *** overseas. *** ***** ******** is ******* ** *** hold ** ** *** European ****** **** ***** rights *** ******** ******** concerns *****.

Domestic ********

******** ******* ** ****** or *** ***, *** very ****** **% ****** inside ** ***** *** its ************ ******* ** home ******** ********* ***** strength **** ****** ******** competitors *** ** ********** foreign ****.

Comments (17)

** **** ** *********** to *** *** *** FCC ******* *** ***+ current ************** (****** ***) on ********* *******.

**** ***** *** *******, HikVision *.*. **** ** finished.

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

Agree: 1
Disagree: 2
Informative
Unhelpful
Funny

* ***** ** **** seem **********. **** **** one ** ***** ***** manufacturers **** ** **** compliant ***** **** ******** and ********** ******** ** a ********** *****. * would **** ** *** some ********, ****, ******, you **** ** *** they ***'* **** * product **** ******** ** remotely ******** ** *** functionality ** **** ** the ******* ********. * hope **** ** **** R&D **** ******* ** working ** ***** ******** so ** *** ******* our ******'* ***** ******* telling **** "*****, ** one ***** ** ***** than *** ****** *** firms".

Agree: 4
Disagree: 1
Informative
Unhelpful
Funny

**** ******** ** *** find *** *******?

Agree
Disagree
Informative
Unhelpful
Funny

** ********** ** **** used * *** ** their ********** ******* ******* for ********* **********.

Agree
Disagree
Informative
Unhelpful
Funny

**** *** ****** ** the *** ******* **** Iryx ? ***** *** bi-spectrum ******* (******* & visible) **** ******** **-***** AI *** ******* ********* which *** ***** *** perimeter **********.

****.**

Agree
Disagree
Informative
Unhelpful: 1
Funny

***** *****, ** *** happen ** **** *** idea ** *** **** of ***** *****? * can't **** ** **** where *** *** *** them ***.

Agree
Disagree
Informative
Unhelpful
Funny

* ***'* **** ***** details, *** ** *** email****@****.**********, ** *** ***** website, *'* **** **** will ** ***** ** help.

Agree
Disagree
Informative
Unhelpful
Funny

******* ** ** **** complaint ******* ************, **** probably **** ********* ** replace *** & *****.

** ** *** ** see *** *** & Dahua *** ****** *** competition ** ** ******* of ********...***..* **** * bunch ** ***** *** are ***** ** ******'* product. ***** *****, ***********, and ********* ********* *** better **** **** ***** brands ****.

Agree: 4
Disagree
Informative
Unhelpful
Funny

* ***** **** ******* products **** **** ** be **********. *** ***** Uniview **** * ******* a *** ***** **** didn’t ******* ** *** build ******* ********* *** offering ** *** ****. I ***** * ******* proposal ** ******* *** will *** *** **** goes. *** ******** *** made ** *** *********** of *********’* *** *****’* future ** *** **. The ******** ** ******* doesn’t **** ***** **** options **** ********* ***.

******* ***** ** ** lacking *****-****** ******* **** would ******* **** *********’* or *****’* ******* *********.

Agree: 1
Disagree
Informative: 1
Unhelpful
Funny

******* ***** ** ** lacking *****-****** ******* **** would ******* **** *********’* or *****’* ******* *********.

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

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Agree
Disagree
Informative
Unhelpful
Funny

****’* *** **** *** I *** *** ***** are **** ******* ********* where * **** *** that *****. * ****** the **** ***** **** Axis ** ** *****’* look **** * *** degree ****** **** * distance.

******* ***** ** ******* one **** *********** *****-******** sensors. * **** ****** one ** *** *** license ** * ***.

Agree
Disagree
Informative
Unhelpful
Funny

*** ***** ** *** find **** *** **** Black *******? **** *** the *** ***** ***** these **** **? ** direct ********; *** **** about *** ********* *********** with ***** *******.

Agree
Disagree
Informative
Unhelpful
Funny

* ***** *** **** white ***** *** **** applications *** **** *** installs ***** ***** **** much ******. ****** *** accessories ** ***** **** helps. * **** ****** sprayed *** ******* ** taken **** ** * local **** **** **** black ***'* *********. *** Axis*****-****** *********** ***** ******* ********** easy ** ***** *** provided ************. * *****'* used **** *******, *** if ***** *** ** be *********, **** ***** most ****** **** ** be ******* ** ***** final ***********.

** * ******** ** black ** * **** color *** ********** **** is ***** ** * dark *****, ***** ******* stick *** *** **** isn't ****** *******.

** *** **** ******* is ****, ***** ******* blend ** ******.

**********, *** ***** ******* aren't ** ****** ********. This ** **** ** opinion, *** ********* ************ should ** ********* *** in *** ****** ** a ****** ** **** account *** ********* ******.

Agree
Disagree
Informative
Unhelpful
Funny

**** **** *********’* *******?

Agree
Disagree
Informative
Unhelpful
Funny

*********'* ******* **** **** about **% (**** **** revenue) ** ~$* ******* (6.2 ******* ***):

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Agree
Disagree
Informative
Unhelpful
Funny

**** *** *********'* ********* profit (** **** *** H1 ****)?

Agree
Disagree
Informative
Unhelpful
Funny

*** ******* *****, **** were ****** $* ******* in ** **** *** ~$690 ******* ** ** 2020 *.*. ****** ** almost **%, ** **** with *******.

Agree: 1
Disagree
Informative
Unhelpful
Funny
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