Hikvision Domestic Sales Hit by Lockdowns, Strong In Developing Countries (Q2 2022)
Hikvision's domestic revenue was hit by China's COVID lockdowns while the company posted strong growth overseas driven by developing countries.
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,********* ** *********'* ** ******:
*******, ********* **** ** *** ***** of $*.* ******* *** ** ****, up *.*%. ** * ********* *****, Hikvision's ***** ******** **** *.**% ** Q2 ** $*.** *******. (********* **** not ***** **** ******** ** ******** sales *** ********* *******). **** ** Hikvision's ****** ** ***** ****** **** the **** **** *****:
**** ******** ****, ********* ***** **** *** ** its ***** **** *** ******** *****, two **** ******** (*** *****) *** one ******** (********** *****) ** ** 2022:
*** ******** ******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]
Stock ***** ****** *%
*********'* ***** **** ****** *% ** Monday, *** ***** *** ** ******* after *** ** ****** *** ********:
*********'* ***** ***** ** **** ***** 50% **** *** ***-**** **** *** year ***, *******, *** **** ********* have ******** ** *** ******* ******* e.g. ******* *** ********* *** **** down ~**%.
**** *** **** * *****, *** company's ***** ***** ** ******* **** though *** ******* *** *******:
Impact ********
***** *********'* ****** ******** ******, *** H2 *********** *** ****** ** *** domestic ***** ********* *** ******* *** PRC ******* **** ****** *********. ***** Hikvision (*** ***** *************) **** ********* to ********** ***** **** '*****' ******* ******, ******* **** ******* ** *** make ** *** *** ******** ************* lost.