Hikvision Q3 2020 Global Revenue Rises, US Revenue Falls

By Isabella Cheng, Published Oct 27, 2020, 09:29am EDT

While Hikvision's global revenue rises driven by domestic recovery, its US revenue continues to fall due to "politics and the epidemic."

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In this post, we examine Hikvision's Q3 2020 financial disclosures and what this means for Hikvision going forward, including:

  • Recovery continues, Q3 2020 revenue grows
  • Stagnating profits cause
  • US business continues to shrink
  • Domestic recovery drives overall revenue growth
  • Hikvision cautious to comment on full-year performance
  • Fever camera demand slows down and changes to Hikvision's gross profit margins
  • Comments on supply chain stability and Huawei Hisilicon
  • Stock market reaction bullish

Recovery *********, ** **** ******* ***** **.**% ***

*********'* ** **** ******* grew **.**% *** ** ~17.8 ******* *** (~$*.* billion ***). ******** ********* reported ***** ** ******* ** Q1 ******* ** *****-** *******, its *******, ********* ** overseas ***** ****** *****,******** ** ****** ** Q2. ******** *** ********* for *********, ** *** revenue *** ******* ** Q1-Q3 **** *** *** higher **** ***** ******** in **-** ****.

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*** ***** ************ ********* in ** ****, **** financial *********** ** **** strong ** **** ********* have **** ************* ******** by *** *****-** ********.

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

*********'* *** ****** ****** fell **** **.*% ** 21.4%, **** *** ******* explaining **** *** ****** due ** ******* ******** gains *** ****** ** its******** ******** ** ******* **. The ***** ************ ** the *** ** *** third ******* ********* *** financial ******** ****** ** exchange ****** ** ** 2020 ** ***** *** million ***, ********* ********** in *** ****. ** comparison, ********* *** ******** gains ** *** ******* yuan ** ** ****. Hikvision ********* **** ***** it ***** **** ** dollars *** ********** **** purchasing *** ********* ********, the *** *********** ** quickly ** ** ****, affecting ********** ** * point ****** *********'* *******:

*** ************ ** *** RMB ** *** ***** quarter *** *** ****, and *** ***** *** intensity ** ******* **** beyond *** ******* ** a *******, *** ***** may *** ** *** foreign ***** ********. ***** are ****** ** ********* involved ** ******* ***** that *** ***** ****** the ****** ** ******** rate ************.

** ***** ** *****, the ***** ******* *** have * ********** ******* exchange ****, ***** *** million ****, ***** *** exchange ***** ** *** same ****** **** **** were *** ******* ****, so ***** ** * difference ** *** ******* yuan ******* *** ***. This ****** ******** ** the ****** ** *** profit.

Hikvision's ** ******** ********* ** ******

***** ********* **** * significant ****** ** ***** cameras ** *** ** this ****, ** *** not ****** ** ****** the ******** ** ***** of *** ******* ********. Hikvision ********* ** **** struggles ** *** **, admitting ** *** ******** call:

*** *.*. ******** *** been ********* ******** ** politics *** *** ******** in *** **** *** years. *** *.*. ****** continues ** **** ********** and *** ******* ***** continues ** ******.

******* ** ***** *** not ***, ** ***************** ******** ****** ** the ** ** ******* ** "***-****** *******". The ******, ****** ******* by *********, ** ******* ***. ** *** ****'* funding *** *** ********* clause **** **** ****** in ****** ****, *********'* business ** *** ** has **** ************* ******** and *** *** **** fully ****** ** *** success ** ******* ***** cameras.

No ******** / ******** ********* *** **

********* *** *** ******* a ***** / ******** vs ************* / ******** breakdown *** *** ** report, ** ** ** not **** **** *** growth ** ***** ****** by ******** ** ******* sales, ******* ** ********* commenting ** *** ** problems.

************, ~**% ** *********'* revenue ** ********. *********'* next ****** *** *** full **** **** ******* a ********* ** ******** vs ******** ***********.

China ******** ********, ********** ********** ********, ****** ******* ******

********* ******** ******** ****** in *** ***** ******** groups (**********, ******, ***), with *** ********** ***** (EBG) ******* *** ******* growth. ******** ****** *** all ***** ****** ** a*********** *********** **** ** 2020, ** ***** *** revenue *** ** **% YoY *** **** *** PBG ******** **** **** -26.90% *** -*.**% ************.

********* ** **** ********** about ***'* ******* ** maintain "* ********** **** growth ****" *** *** PBG *** ****'* ************ will ****** ** *** well *** ******* ************ can *******. ********* **** EBG *** **** *********** space *** ******* **************:

******* ************** ** ***** enterprises *** *** ***** of *********** ******** *********** is ******** **** ********. There ** ***** ********** large ****** ***** ** the ******.

******** ** ***, *** and ****'* ************ **** both ****** ** *** economy's ********, ********* ****. While **** **********-********* ******** have ******* ****, ********* admitted "*** ****** **** of *** ** ***** than ******** ** *** beginning ** *** ****," elaborating:

*** ******** ** ******** by *** ******** *** the ******* ************, *** there *** **** ******* that ****** ********** ******* and *** ***** ** the ******* ************** ** large ********. ** **** seen ******* ***** ** recovery ** **** ******** of *** *** ********; some ****** ******** *** relatively ***** ******** ****** in *** ****, *** now *** ******** ****** has ********, *** ** hope ** *** **** return ** ******** ** the ****** *******. ******** the ******* ******** ** PBG ***** ***** ***** of *** ************ ** the ********* ** *** year, *** ******* ***** is *********. ******* ******* to **** ****, ** maintain * ********** ********** view.

********* **** **** *** hit **** ** *** pandemic, ********** ** ****** and ***** ********** ************. However, ********* ** ********** about ****'* ******* ** the ******* *** ****** recover:

*** **** ******** *** the ******* ****** **** been ************* ******** ** the ******** ** *** first ******* ** **** year. ***** *** ******-***** enterprises *** * ********** fragmented ******, *** *** impact ** *** ************* of *** ****** ********, including **** ***** **********, is ***** ********** *****. At *******, *** ****** rate ** **** ** the ***** ******* *** returned ** ********. ** the ******* ************ *** maintain * ********** ****** and ******** ********, ** believe **** **** ****** have **** *** * rebound, *** *** ********* have *** ** ** implemented ** *** **** step.

Hikvision ******** ** **** ********** ***** ****-**** ***********

***** ********* ****** *********** revenue *********** ** ** 2020 *** *** ********* its ***** ******* **** Q1-Q3 ****, ** ** still ******** ** ******* guidance *** *** *** company's ****-**** **** *********** will **** ****:

********* *** ******** *** the **** **** ** 2020, *** *********** ******* about ** *** ******** still ******, *** *** uncertainty ** ************* *** international ********* ** ***** prominent. *** ******* **** continue ** ******** * cautious ******** ** *** business ******** *** ** not **** ************ *** the ****-**** ***********.

Gross ****** ******* **** ** "********** ****** *****", ********* ***** ****** ****** **** ****

***** ****** ****** ** slowing ****, ********* ** a **** ** *********'* gross ****** ******* ************** ****** ****** ******* in ** ****. ***** ****** ******* declined **** ** * "relatively ****** *****," ********* said ** *** ******** call. ***** ********* *** not ******** ****** ** investor's ******** ***** ******* the ******* ** ***** revenue ** ******* ******** impacted ******* *******, ********* said *** "****** ********* has ******** ** * relatively ****** *****" ** the ******** *** ********** in ** ****. ********* noted *** ***** ******* sold **** ** ** 2020 *** **** ***** slowed ** **, ********* fever ****** **** **** has "** ******* ****** on *** *******'* ***********":

******** ** *** ********, thermal ******* ******** ********* well ** *** ***** half ** *** ****. The ***** ******* *** quickly ****** **** ** the ******* ******* ***** rhythm, ***** *** ** obvious ****** ** *** company's ***********.

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

********* ******* *** ******** about ****** ***** *********, specifically ***** ******* ** an ******** ***** ****** as** ***** ************ **** created * ******** ** HiSilicon *****. ********* *** ********** about ******'* ******* ** deal **** *** ***** restrictions' *******, ******:

** **** **** ****** can **** **** *** difficulties, *** ** **** believe **** **** *** tide **** *** ************.

********* ********* ********* **** they **** **** ***** to ******* ******* ****** chain ****** *** **** domestic ************* ***** ************ to *********:

** ****** ****, **** generation **** ******* *** talents *** *** ********. At *******, *** ******** chip ****** ** ** a ***** ** ********** and ***** *** "* hundred ******* ********". **** if * ******* **** manufacturer **** *** **** out ** * ***** time, ***** *** ***** made ***** **** **** manufacturers **** *** ** used. *********, ** *** not ******* ***** *** stability ** *** ****** chain ***, *** ** have ******* ***** * quite **** ********.

Hikvision ***** ** **.*% ***** ** ******* ********

*** ****** ** ******** very ********** ** *********'* Q3 **** ********* *******, even ** ********* ** unwilling ** ***** ************ for *** ****-****. *********'* stock ** *** ******** stock ******** *** ** 12.6% ** *******, ******* 27, *** **** ***** Q3 **** ********** **** released. ********* ***** *** jumped *.*% ** ******, October **, *** ***** full *** ** ******* after ********* ******** *** Q3 **** *******.

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********* ***** ** *** approaching *** ***-**** **** set ** ***** ****. This ** * ******* sign *** *** *******.

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**********

*********'* ****** ** **** performance ***** *********** ******** from *** ********* ** early **** ** *****-** erupted *** ****** ********. Investors *** **** ********* in *********'* ***********. *******, high ****** ***** ****** sales, ***** ***** *********'* profits ** ** ** 2020, **** *****-*****. ****** for ***** ******** ******** in *** ***** **** of ****, *** *** slowed ************* ***** ** some ********* (*.*. *****) largely **** ********** *****-** and ****** **** ****** fatigued ** ***** *******. Hikvision's ****** *********** **** remain ** ** **** as *** *** ** 2020 **********.

Comments (4)

***** ****** ****** ** slowing ****

******* * ***** **** this ***** **** ** expects *** ***** ****** boon ** ** ******** by *** *** ** next *****. **** ** interesting ** *** **** Q4 ***** ****** ******* look ****.

****** *** **** *******, Robert! * ***** **** down *** **** ** general ***** *** ***** talking ** * *** people **** *** **** few ******, *** ** is ******* ** ***** that ****** **** ** ending **** ***** ** mind.

*************, ***** *** *** release *** *********** ***** their ***** ****** ***** when **** ********* ***** Q3 *******, *** ******* at ***** ****** ******* this ******* *** ******** with **** ********* ** saying, **** **** **** does **** ****. * will ** ********** ** reading ***** **** ****** report, ***.

**** **** **** ******** Jeffery ** ** ** President *** * *** mistake **** ** ***. Jeffery *** *** ** the **** *** *** the ***.

*** *** **** ********** volume ** *** *** the ************ ******* ******* for *** ****** **** just ******* * ****** of *****'* ****.

******** ** ********, ***** to ***** ** *** cameras ******* *** **** ago *** ** *** can ****** *** ******* there's ***** ** ***, back *** ***** ******** times. ***** *** *** says ***** ***** *** ADI ****** ****** **** to **** ** ********.

******* *** **** *********. My ******** ******* *** access ** ********* ****** but ***'* ***** ****, he ******* ** ** email *** ***** **** I **** ********* ** see ** **'* *********. ADI ***'* **** ****** at ******* ***** ** things ******.

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