Hikvision Growth Rate and Profits Falling Faster Q1 2016

Author: John Honovich, Published on Apr 12, 2016

Just a year ago, Hikvision was an unstoppable force, growing at an astounding 60% rate.

Now, after a weak Q4 2015, Q1 2016 was even worse.

In this note, we examine Hikvision's financials, looking at what is driving this.

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

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

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

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

Q1 **** *******

******* *** ** ~**% **** **** ****, **** **** ~**% the ******** *******, *** **%+ ** *** ********* ** ****.

******* *********, *** ****** ******* ********, **** ******* ********** ** **** than **** *** **** ** ******.

********* ****** ** ************ ******* *** ****** ******* *** *********.*** ********* ** **** (******* ********) **********.

Raising ****

*** *** **** ** *** *** ** **** ************'* $*.* ******* *********. ** **, ********* ****** ~$*** ******* ** *** ****, up ***% **** **** ****.

Burning ****

******* *********'* **** **** ******** *** ******* (~**%, ****** **** from ~**% ** *** **** *** *****), *** ******* ********* to **** ****. ******, ********* ****** **** **** **** ********** in ** **** **** **** *** ** ** ****, ****** the ****** **** *** **** ** ~**.

High ******** **********

*** ***** ** ******* **** ** ****** ** *********'* ********* paying ****. *********'* ******** *********** *** ******* ** ****** ***** their ****** **** **** **** ***** *********** ** ~*** ****.

** ***** **** * ******* ***** ********* ****** *** ******** the **** ****** ***** ** *** ************* ******** ******* / *********. ** says ****, ***** * *** ** *** **** *** ** uncommon ** *** **** (*.*., **** ** ~** ****), **** worse ****** *** ******* ** *****. ********, ** ****, ***** Hikvision's ****** ********** **** / ************, ********* ** ** ********** good ***** ** ** **** (**********) ** *** ********** *********.

Domestic ** ******** ********

** ******* **** *** **** ****** **** ** ********* ** China's domestic *******, ***** ** ****** ******** ******* **** ***** *** normal ** ***** ****** / ***** ** * ********* **** landing. ******, ***** ***** ** ********** ************** ****** ***** *** been * **** **** *** *********, *** **** **** **** continue?

********* ***** *** **** ****** ******** ******** *********** ***********, **** a *** **** ** *** ****** **** **** *** **** over. *******, **** ** ******* **** ***** *******, ***** ****** *** been *********** ******** ** ******** *****, ******* ***** ****** ***** will ** ************ ****, ** ****** *** ******* ******, **** overseas ******* **** ** ** ****** ********** *** ** *** benefit **** ********** ********* / *************.

********, ** ***** ******* ******** ** ***********, *** ** *** ******* domestic ****** *******, **** ***** ****** ***** ************* *********. **** noted, ** ********* ************ $*.* ******* ** ***** ********* ** ******* ********, **** **** ****** ** ******** ** **** ****** *** years ** ****.

*******

*** ***, ** ** *** *** **** ******** *********'* ******* approach *** ******. *******, *** *** ******** ** *** *** down **** ********* ****? **** **** ********* ****** ***** ******? Will *** ******* ******* ******* ******* ** **** ** *** a **** *******? ***** *** ***** ********* **** *** ***** over *** ********.

** ** *******, ******, **** *** ****** ** *** ***** surveillance ****** ******* ******* ** *** ****** ** *** ******* government *** *** ******* / ********** **** *********.

 

Comments (8)

****, ** *** ******* ********* *** *** ** *** ****** leading ** ***** ****** ******** ****** * *******? *** *******, if ***** ******* ********* *** ** ******** ********, ***** **** help *** ***** *** ****** (****, ********, ***)?

** *** ******* ********* *** *** ** *** ****** *******

**** ****** ******* ** **** ******* ** *** ******* *******. Hikvision ******** **** **** ** * ***** *** *** ** that ************* ********.

*** ** ** ***** ******** *** ***** ************** ******** ****** in ***** ** *** ***** ********* *** **** *********. ******* that **** ****** **** ** ******* ****, * ** *** know.

** ** ***, ** ***** ********* **** ****, ********, ***. On *** **** ****, ** ********* **** **** **** *** happen, ** ***** ********** **** *** ******** ** *** ******* Western ****** **** **** *** ***** ** ********* ***** ** market.

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

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

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

**** ***** ** *********** ** *** ** **** ****** ********* Hik ** ****** - ****** *****, ****** *******, ***. **** the **** *** *****. *** ***** ****** ******* ***'* ** expected ** ******* **** ****** **** **** ** *** ******* reflects **** ****** ** ******** *** *** ******** **** **** of ***********.

** ***** ** **** ** *********** *** ***** ******, ** is **** ** ******* ********* (*** ** * ****** ****** Dahua) ** ***** ************ ************* ** *** **** ** *** world.

*** *******,**** ** ****, ********* *** ~$*** ******* ** *******. * ***** ***** (2015), **** **** ****** *** ***** ***** $* ******* *******. The ****** ****, *** ****, *** ** **** ** ********** out ** ***** ** ******** ******* ** *****.

**** ** ** ** *** ***** ****** ** *** ******* economy, **** ** ** ** *** ******* ************** ******** ********** China ***** ***** *** **** ********* ******, **** ** ** is ***** ***** ** *** ******* **********.

******* ** **** ** ** **** ** *** '**** ****** be ********', **** ** ***, ******* ** ** ** ****** any ***** ***** ************ ************.

*** ** ** *** ********* *** * ***** ********* **** a ***** ** ****** ******** **** **** ** ** ** if *** ***** *** ***** *** ** *** ****** ***** is ****** ******* *** *** ******** **** *** **** **** less ***** *** **** ******. **** **** ****** *** ********** quality **** *****

*** **** ***** ** **** *** ******* ******. * ***** what *** **** ** ** ******* **** ***** *** **** client. ** *** **** ** *****. **** *** **** ****** budgets, ***** ****** ******* **** **** ** ****** ***. ****** a ********** ******, ***** ****** ** ** *** ***. *** can **** ***** ** **** *****. **** **** **** *** balance ***** *** **** *** *** *** *******.

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