标题：Dahua TechnologyEver more competitive; from hardware to solutions & new business
发布日期：2016-03-28 14:22:12
内容： What's new Dahua held an investor reception, at which managementvoiced its opinions on: the domestic competitive landscape;its overseas growth expectations; the progress of its solutionsand operations; and, new business updates. Comments Despite slowed macro growth, Dahua’s performance isexpected to beat the industry. 1) acceleration of industrialreshuffle may help increase Dahua’s market share; and, 2) thecompany will strengthen its exploration of large PPP projects. Overseas market share to rise; high revenue growthvisible. Dahua believes the reasonable level for overseasrevenue should be twice as much as domestic revenue. Thisyear’s target is to set up 30 new overseas branches (2015: 15)and continue to expand overseas. We expect it willmaintain >50% growth. Price competition is just a tactic; solutions & operationservices build up barriers. The company indicates it will notproactively trigger a price war. Its core competitive edge still liesin the following areas: 1) In 2016, 30~40% of products will beequipped with solutions; and, 2) operation services accountedfor ~1% of revenue in 2015. Entering new areas based on video business. Videoapplication is essential for security & surveillance. Dahua hasbeen exploring new video-derived businesses, such as machinevision, unmanned aerial vehicles and VR/AR. Valuation and recommendation Forecasts unchanged, with 2016/17e EPS of Rmb1.78/2.52.The stock is currently trading at 19.7x/13.9x 2016/17e P/E.Maintain Conviction BUY and TP of Rmb47. Risks Competition intensifies; domestic macro conditions sluggish.
发布日期：2016-03-28 14:22:12
内容： What's new Dahua held an investor reception, at which managementvoiced its opinions on: the domestic competitive landscape;its overseas growth expectations; the progress of its solutionsand operations; and, new business updates. Comments Despite slowed macro growth, Dahua’s performance isexpected to beat the industry. 1) acceleration of industrialreshuffle may help increase Dahua’s market share; and, 2) thecompany will strengthen its exploration of large PPP projects. Overseas market share to rise; high revenue growthvisible. Dahua believes the reasonable level for overseasrevenue should be twice as much as domestic revenue. Thisyear’s target is to set up 30 new overseas branches (2015: 15)and continue to expand overseas. We expect it willmaintain >50% growth. Price competition is just a tactic; solutions & operationservices build up barriers. The company indicates it will notproactively trigger a price war. Its core competitive edge still liesin the following areas: 1) In 2016, 30~40% of products will beequipped with solutions; and, 2) operation services accountedfor ~1% of revenue in 2015. Entering new areas based on video business. Videoapplication is essential for security & surveillance. Dahua hasbeen exploring new video-derived businesses, such as machinevision, unmanned aerial vehicles and VR/AR. Valuation and recommendation Forecasts unchanged, with 2016/17e EPS of Rmb1.78/2.52.The stock is currently trading at 19.7x/13.9x 2016/17e P/E.Maintain Conviction BUY and TP of Rmb47. Risks Competition intensifies; domestic macro conditions sluggish.
