Security Development in the First Half of 2013

As of October 31, the third quarterly report of listed companies in Shanghai and Shenzhen has been announced in succession. Several third quarter 2012 reports of listed companies with security as the main business were also released. What is the development of the security industry in the third quarter of 2012? The data in the listed company report is the most convincing. The following are the key points in the third quarter report of several security listed companies:

Security stocks have mixed performance in the third quarter

Hikvision released the third quarterly report on October 27. From January to September, it realized revenue of nearly 4.8 billion yuan, an increase of nearly 39% year-on-year; net profit attributable to the parent company was 1.24 billion yuan, an increase of nearly 43% year-on-year. In the third quarter, revenue was nearly 2 billion, an increase of 44% year-on-year; net profit was 510 million, an increase of nearly 49% year-on-year, higher than the 38.5% year-on-year growth rate of the first half of the year, indicating that the company’s performance is accelerating its growth, the security industry’s The boom is still continuing. Front-end equipment is still the main force of the company's third-quarter growth. The company also expects that the annual net profit will increase by 30% to 50%.

Dahua announced the third quarterly report on October 25. In the first three quarters, it achieved operating revenue of 2.193 billion yuan, an increase of 50.13% year-on-year; net profit attributable to shareholders of listed companies was 378 million yuan, an increase of 85.08% year-on-year. In the third quarter, the company realized operating income of 896 million yuan, an increase of 58.18% year-on-year; net profit attributable to shareholders of listed companies reached 152 million yuan, an increase of 102.03% year-on-year. The three quarterly reports showed that the company's revenue and profits continued to grow at a rapid rate, and the single-quarter growth rate reached a new high since early 2011. The company expects its annual net profit to be 6.05-7.56 billion yuan, a year-on-year increase of 60%-100%.

Hanwang Technology released a three-quarter report on October 25. The first three quarters achieved a total revenue of 300 million yuan, a decrease of 23.64% over the same period of last year. Although net profit increased by 86.25% compared with the same period of last year, it still lost 38.18 million yuan. In the third quarter, the company’s net profit loss was 19.62 million yuan, an increase of 81.13% over the same period of last year. From January to September 2012, the loss per share was 0.18 yuan, and the annual net profit was pre-loss. Hanwang Technology also stated that in order to reverse its performance loss, the company's management plans to dispose of related businesses and assets in the fourth quarter, and at the same time increase investment in new products, optimize staffing, and actively control expenses.

The performance of Infinera, Dinghan Technology, Diwei Video, etc. is also not optimistic. On October 25, Infinova announced that the third quarterly report stated that the company achieved a net profit loss of 9.14 million yuan in the first three quarters, a decrease of 119.98% from the same period of last year. Dinghan's net profit remained at 2.55 million yuan, but it was 95.99% lower than the same period of last year. The Dewey video network achieved a net profit of 8.67 million yuan, a decrease of 26.69% compared with the same period of last year.

According to the results of the above three-quarter report of security major listed companies, the development of the security industry in the third quarter of 2012 was mixed. The two security giants, Haikang and Dahua, continued to maintain high-speed growth, which is less than ideal for other companies. . Why does this phenomenon occur, and what are the underlying causes? The following analysis may give relevant answers:

Poor domestic and international economic conditions in the third quarter dragged down the development of the security industry

In the third quarter, the low-growth and uncertainties of the world's major economies continued to affect the global economy through trade and finance, and these increasing risks further delayed the pace of global economic recovery.

From our point of view, the "Twelfth Five-Year Plan" proposes that the goal of China's economic growth over the next five years is an average annual rate of 7%, and the economic situation in 2012 has been in the process of bottoming out. The economic situation in the third quarter continued to decline, and was approaching the bottom. For example, the national industrial producer price index in the third quarter showed a continuous downward trend, with a month-on-month decrease of 0.8% in July and a month-on-month decline of 0.5% in August. Meanwhile, the leading index of China's manufacturing purchasing managers index predicting economic prosperity is very important. (PMI) also showed ups and downs this quarter, with July PMI reporting 50.1% and then falling below the thresholds in August and September, which were 49.2% and 49.89%, respectively. Imports and exports also showed signs of slowing down: In July, the total value of imports and exports in China increased by 2.7% year-on-year, and by August, the total value of imports and exports in China only slightly increased by 0.2%. In the third quarter, China's GDP growth rate will slow down to 7.5% year-on-year, slightly lower than the second quarter.

It was precisely because of the slowdown in domestic and foreign economic development in the first three quarters of 2012 and the unfavorable situation in the domestic foreign trade situation in the first three quarters of 2011, the development of the security industry in the third quarter was affected to some extent. However, the two leading companies in the industry still maintain rapid growth. It can be seen from another level that China’s overall economy has slowed down and will continue to maintain this trend of stabilization and slowdown for some time to come. This shows that our government pays more attention to the effectiveness and efficiency of economic development, and the pace of development is not particularly important. China's security industry may also be experiencing such a trend of development, from high-speed expansion to focus on efficiency and focus on brand changes, the direction of excellence, which also indicates that competition in the survival of the fittest more fierce competition, corporate branding has become another key.

Policy support is gradually clear, and security development in the fourth quarter and the first half of 2013 will pick up.

With the release of the report of the 18th National Congress and the new Politburo Standing Committee collective appearances. The new leaders of the country will surely carry out some reforms in the political economy. These reforms will surely promote the development of China's overall economy. This will be a great "gospel" for many industries, and the security industry will be the same.

In 2012, the Ministry of Public Security's relevant business bureaus held several meetings to promote the implementation of the integration and sharing of video image information among public security agencies across the country. The provinces also successively proposed relevant laws and standards to promote the integration and sharing of video image information among public security agencies. Coupled with the market's demand for video surveillance "big Internet", the era of security video surveillance and large-scale networking is approaching, which will further promote the security industry to a new high.

In the second half of 2012, the National Development and Reform Commission accelerated the examination and approval of major infrastructure projects such as transportation, energy, and water conservancy, and the total investment for the approved projects reached around 5 trillion yuan. Especially in areas where security involves a wide range of rail transportation, construction speed is even more pronounced.

In July 2012, the State Council issued the "Twelfth Five-Year Plan for Comprehensive Transportation System". In the "planning", the average annual growth rate of a number of transportation indicators has remained above 7.5%. "Planning" also proposed that in order to meet the needs of the development of urban agglomerations, rail transit and highways should be used as backbones to build an intercity rapid network. At the beginning of September, the website of the National Development and Reform Commission announced the news that the rail transit construction plans for many cities across the country were approved, and signs of speeding up in urban rail transit construction. In October, the State Council held an executive meeting to study and deploy priority cities in the development of public transportation. People in the industry believe that urban rail transit, which is an important component of urban public transportation, is expected to usher in rapid development in the near future.

At the same time, relevant data from the National Bureau of Statistics in September and October showed that industrial and export growth rebounded, and the growth rate of profits of industrial enterprises above designated size decreased.

From the adjustment of the above national policies, we can affirm that China’s economic form will show a slight and stable upward trend in the fourth quarter of this year and the first half of 2013. The security industry will also pick up with the economy, and the era of “big networking” will come. Once again, the construction of infrastructure projects will show rapid development.

Conclusion

The security industry, as the “sunrise industry” in the national economy of China, is a collective application of various industries. It also shows a certain development curve with the development of China’s economy. However, the security industry has its own particularities and is more affected by the national policies. . As China's economic growth model continues to optimize - from the input factor-type growth gradually improved efficiency growth, security industry competition will be more intense, security brand building will become an important way out of business success!