Security concept stocks half year performance gratifying future is still worth the wait

As of July 25, 331 of the 337 GEM listed companies have issued interim results announcements or mid-year reports. Among them, 208 companies reported good news, accounting for 62.84%; and 123 reported bad companies, accounting for 37.16%. However, the number of GEM companies whose profit growth is above 40% has fallen sharply, and the growth rate of more than 60% of the company's earnings has been below 20%, of which, 40% of the company's performance has shown negative growth. Excluding the proceeds from the large amount of over-raised proceeds, the GEM's main business profitability decreased even more.

Compared with the Growth Enterprise Market, after the breakdown of the "diamond bottom", the overall market still has not seen a stable trend. Recently, it has again set a new low for nearly three years. For the heavyweights, the CSI 300 Index hit a new low in nearly three years, with two consecutive bank stocks falling below their net assets per share. In addition, trading volume has continued to shrink. Judging from the market trend and the performance of the heavyweights, the market has recently broken through.

However, in the case of negative growth in the company's performance on the GEM, and the overall downturn, the security of most listed companies performed well.

Security industry more than gratifying performance in recent days, the security industry, some listed companies have issued half-year performance notices and announcements, from the current release, the security industry, many stocks gratifying performance.

Taking Hai Kangwei, the main security video surveillance company, as an example, the stock has risen 36% during the trading time in the past half year. Another security leader, Dahua, rose more than 52% in the past six months. Two security stocks far outperformed the broader market.

Hikvision released the 2012 half-year performance forecast. It expects to achieve revenue of RMB 2.8 billion in the first half of the year, an increase of 35.4% year-on-year; operating profit of RMB 740 million, an increase of 28.1% year-on-year; and achieving net profit attributable to shareholders of the listed company 7.3 Billion yuan, an increase of 38.4% year-on-year; EPS 0.36 yuan in the first half of the year, in line with the security industry's previous expectations.

Hikvision is a leading company in the domestic video surveillance system. Last year, the high-definition camera technology business alone achieved 2 billion yuan in revenue last year. Hai Kang has two logics of import substitution and centralization at the front end camera product line, and it is expected that the revenue will continue to grow rapidly in the future. Hikvision has made good progress in branding, scale, channel control and new product R&D. In addition, the company continues to replicate its product lines, extend its downstream solutions, and expand its overseas markets. Breakthrough in the industry shuffling process.

According to the first half of the report issued by Dahua Securities Co., Ltd., the company achieved a total operating income of 1,296,800,800 yuan, a year-on-year increase of 45.02%. The net profit attributable to shareholders of the parent company was RMB 228,509,600, which represented a year-on-year growth of 75.17%, which was slightly higher than the industry’s previous expectation of an increase of 70%.

Dahua shares and Hikvision said they are the two leading players in the security industry. The rapid growth of the company in recent years has mainly come from the increase in performance gained from product upgrades and market expansion. While the role of the equipment provider has grown, the overall solution provider role has also taken a big step with the introduction of a series of products for the intelligent transportation terminal system. At the same time, Dahua also strives to expand its operational services and explore new business development opportunities.

Zhongwei Electronics released the 2012 semi-annual report. In the first half of 2012, the company achieved a net profit attributable to shareholders of listed companies of 25.13 million yuan, an increase of 36.56% year-on-year; total operating revenue of 72.073 million yuan, an increase of 21.06% year-on-year; basic earnings per share of 0.42 yuan. During the same period, Zhongwei Electronics also released a high-definition security monitoring system to solve product development and industrialization projects. It plans to use 100 million yuan of over-raised funds and self-raised funds for the construction of the project. The total investment of the project is 190 million yuan. After the completion of the project, Zhongwei's high-definition security monitoring system will solve the total product development and production capacity will reach 196,000 sets / year. The construction period of the project is 2 years, and the sales income can reach 164.8 million yuan the next year after it is put into production, and the average annual sales income can reach 206 million yuan after it reaches production.

National policy support for future security concept stocks is still worth looking forward to security as part of social and public security. With the development of social economy, its rigid demand is inevitable. In 2012, the State Council budget report showed that the “public safety” budget for 2012 was 701.763 billion yuan. Yuan, an increase of 11.5% from the number of executions in 2011. In addition, the State Council and local governments have successively issued a series of policies to create a good environment for the development of the security industry.

The State promotes the development of informatization to provide the basis for security. On June 28, 2012, the State Council issued the “State Council’s Several Opinions on Vigorously Promoting the Development of Informatization and Effectively Protecting Information Security”, proposing to speed up the construction of the “Broadband China” project and the “Three Networks Integration”. Efforts will be made to promote the transformation of the electronic information industry from pure product providers to integrated solutions and information service providers, while accelerating the development and application of software and promoting the development of information in multiple areas.

On July 9, the State Council triggered the “Twelfth Five-Year National Strategic Emerging Industries Development Plan”. The national strategic emerging industries refer to the industries that are based on major technological breakthroughs and major development needs, and have significant leading ties for the overall economic and social development of China, long-term development, knowledge and technology, low material resources consumption, large growth potential, and comprehensive benefits. . It is required to grasp the opportunities for the upgrading of information technology and the development of industrial integration, and accelerate the construction of broadband, converged, secure, ubiquitous next-generation information networks, breaking through ultra-high-speed optical fiber and wireless communications, Internet of things, cloud computing, digital virtualization, advanced semiconductors and new types of displays In addition to a new generation of information technology, it promotes the interactive combination of information technology innovation, emerging application development and network construction, innovates the industrial organization model, raises the level of new equipment support, fosters new service formats, enhances international competitiveness, and drives the realization of China’s information industry from large to large. Strong change.

The state attaches great importance to the development of informatization and will not spare extra resources to promote the development of China's informatization. As one of the important application fields of information development and an important part of the electronic information manufacturing industry, security will usher in more development opportunities along with the development of China’s information technology.

Intelligent Transportation and Smart Cities Expand New Fields for Security Applications On July 27, the State Council announced the “Opinions of the State Council on Strengthening Road Traffic Safety”, pointing out that the road safety will be supported by science and technology and the rule of law is a guarantee. Strengthen the application of road traffic science and technology equipment and information technology, promote the construction of intelligent traffic management systems such as highway monitoring, strengthen the application of technology equipment and information technology in road traffic law enforcement, and improve road traffic safety management and control capabilities. Integrate road traffic management forces and resources, establish linkage mechanisms for departments and regions, and share resources such as monitoring information. With the development of intelligent transportation in China, the application of security in the field of intelligent transportation will continue to expand.

The construction of smart cities is the main direction for future urban construction. At present, the State Council and governments at all levels have proposed plans for building smart cities. As of the end of June 2012, the three major operators have cooperated with the local government to build smart cities in more than 320 cities across the country. The three major operators predict that more than 80 cities and operators will cooperate to build smart cities in the second half of 2012. By the end of 2012, the number of cities nationwide to build smart cities is expected to exceed 400. From the disclosed data, during the “Twelfth Five-Year Plan” period, the direct investment in the above-mentioned 300 cities in the construction of smart cities totaled more than 300 billion yuan, while industry insiders estimated that the above-mentioned cities were used to build wisdom during the “Twelfth Five-Year Plan” period. The total investment scale of the city will probably reach 500 billion yuan. With the construction of smart cities and the launch of related services in the future, more than 2 trillion industrial opportunities will be launched in the construction of smart cities throughout the 12th Five-Year Plan period.

As part of the construction of a smart city, smart security will not only develop by leaps and bounds with the construction of smart cities, but also other areas of smart city construction such as smart buildings, intelligent transportation, smart homes, etc. The rapid development of smart cities has brought good news to many security companies. At the same time, due to the scale application of security products in the construction of smart cities, security companies can play a supporting role in the construction of smart cities.

Although the current global economic growth is sluggish and domestic and international demand is insufficient, China's economy is facing a downward trend, and many industries are facing serious excess production capacity. However, as the security industry of Chaoyang industry, with its broad prospects, special industry properties and guidance at the national policy level, the prospects of the security industry in the second half of 2012 and 2013 are still worth our expectation. Security listed companies are still worth investors' attention. .

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