Hikvision Domestic Sales Hit by Lockdowns, Strong In Developing Countries (Q2 2022)

By Charles Rollet, Published Aug 15, 2022, 08:41am EDT (Info+)

Hikvision's domestic revenue was hit by China's COVID lockdowns while the company posted strong growth overseas driven by developing countries.

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Hikvision's profits fell by over 10%, with the firm's stock dropping ~5% the day PRC markets opened. In this post, IPVM examines Hikvision's latest financials and what they mean for the company.

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

*** *** ** **, *** *** was ******* ** ****** ********* ** several ***** ******,******************, ** ***** ***** ****** ** parts ** *** *******. *** *** has ********** *** '**** *****' ****** ***** *** ******** *****.

**************** "******** ****** *** *** ** the ********* ** *** ******** ** March, ***** *** ***" ****** ********** in ****. ******** ***** **** *.**% year-on-year ** $*.** ******* *** *** first *** ****** ** **** ******** to **** ******** **.**% ****** *** overseas *****, ***** **** ** $*.** billion,********* ** *********'* ** ******:

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*******, ********* **** ** *** ***** of $*.* ******* *** ** ****, up *.*%. ** * ********* *****, Hikvision's ***** ******** **** *.**% ** Q2 ** $*.** *******. (********* **** not ***** **** ******** ** ******** sales *** ********* *******). **** ** Hikvision's ****** ** ***** ****** **** the **** **** *****:

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**** ******** ****, ********* ***** **** *** ** its ***** **** *** ******** *****, two **** ******** (*** *****) *** one ******** (********** *****) ** ** 2022:

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*** ******** ******was *** ** *** ******** of the epidemic in March, April and May, which had a more direct impact on the business and recovered ** ****. Among them, the public service business group PBG [public business group i.e. government] achieved revenue of 6.975 billion yuan [$1.03 billion], down 1.40% year-on-year; EBG [enterprise business group] achieved revenue of 6.831 billion yuan [$1.01 billion], an increase of 2.58% year-on-year; SMBG [small and medium business group] achieved revenue of 6.286 billion yuan [$928 million], an increase of 3.97% year-on-year. [emphasis added]

********* ********** ****** ** ****** *** *** ********* *** **** begun **** *** ******** ****** ***** lockdowns ** *** *** *** * "dampening ******". ***** ******** ****, ********* **** "******** ***** *** a ***** *******" ** *** ****** half ** ****.

"Can't *********" ****** **% ******* ******

** *********** ****, ********* *** ***** ** ** could "******** *** ******** ****** ****** rate ****% **** *** *****-*******" ***** *** ******** "****** ********" of *****'* *******. ********* **** ** "could *** *********" *** ******** ****** for *** ******, ********* ******* *** prospects *** "**** ****":

I ***'* ********* *** ****** in the next *-*******, ******* ***** *** *** **** factors, *** * **** **** ********** in *** ****** ** *********'* ************ and ******** *********. **** ********* ****** any ****** *******, ** **** * firm **** ** ****** ** ** the *** *****. [...] ** *** next*-*******, * **** *** *** **** the ******** ****** ****** **** ****%*** ***prospects *** ********* *** ***** **** **** [emphasis added]

********* *** ***** **** **** ***** achieving **% ****** ****** *** ********* "We **** *** *** **** ** do **, *** ** **** *** set * ****** ************". **** ********* Hikvision ***** *** ****** **, ** best, ***** ******.

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

** *********** ****, ********* ****** *** ******** ***********, stating *** **, **, *********, *** others "**** **** ******** ** ********* activities" *** "*** ******* ****** ** Asia-Pacific, ***** ******* *** ***** ******* is ******."

*** ****** ******, *******, ********* *** other ********* *** ******* **** ****affected ** ********* *********s, political atmosphere, etc., and business development has been somewhat interfered with; the overall growth in Asia-Pacific, ***** ******* and other regions is ******. [******** *****]

** ******* *******, ********* ********* *** US *** ********* ** "********** *********" where ********* **** "******* **** **************" but ******** ***** *** "**** *************" remaining ** ****, ***** *******, *** the ****** ****:

***** *****'* ****-************* *****, ** **** to ***** ********* ********** ** ********* markets, **** ** ***United ******, ********* *** ***** ********** ********* ** ******* **** **************. We will step up our efforts in more countries, and in regions such as Asia, *** ****** ****, ***** *******, and even in some other developed countries, we still believe that there aremany *************. [emphasis added]

********* **** ********* ******* ******, ******* Asia, *****, *** ***** ***** ** growth *************.

Profits *******

*********'* ** **** *** ******* ******** 11.14% ** $*** *******, * ****** PRC ************ **.**** ***** ***** *** *******, ********* did *** ************ ********* ** ** anything,*******"** ********** ** **** **** ****** all *** ****, ***** **** ****** be ************":

**** **** ***** *** ****** **** a ******* ** *** ****** ** the ***-**** ******, * ***** **** day **** **** ****** ** *****,it ** ********** ** **** **** ****** *** *** ****, ***** **** ****** ** ************. [emphasis added]

********* *** ********* * *.** ********** point ******* ** *** ***** ******* (to **.**%) ** * *********** ** factors: ****** ***** ******, *** ********, and ********* *********** ****** ** "**** demand". ********* **** ******* ** ***** "maintain * **** ********* ***** *** a **** ****" ******* *** "****** on *********'* ***** ** *****".

Stock ***** ****** *%

*********'* ***** **** ****** *% ** Monday, *** ***** *** ** ******* after *** ** ****** *** ********:

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*********'* ***** ***** ** **** ***** 50% **** *** ***-**** **** *** year ***, *******, *** **** ********* have ******** ** *** ******* ******* e.g. ******* *** ********* *** **** down ~**%.

**** *** **** * *****, *** company's ***** ***** ** ******* **** though *** ******* *** *******:

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Impact ********

***** *********'* ****** ******** ******, *** H2 *********** *** ****** ** *** domestic ***** ********* *** ******* *** PRC ******* **** ****** *********. ***** Hikvision (*** ***** *************) **** ********* to ********** ***** **** '*****' ******* ******, ******* **** ******* ** *** make ** *** *** ******** ************* lost.

*******, *** **** **** ********* ******* specific ****** ********* ***** *** ******* knows *** **** ****** ** ******** years ** ****** **** *** ** planning *** * **** ************ ******.

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