In 2011, affected by inflation, the prices of various raw materials continued to rise, and bank loan interest rates also rose steadily, which brought pressure to the production and operation of security companies. Some people joked: In 2011, what commodity prices are rising, only security products do not rise! In fact, insiders know that not only did it not rise, but it was affected by the price war, but it dropped a lot. The result is that demand is strong and the market is booming, but profits have fallen sharply.

The overall development of the listed companies in the industry was good. In 2011, the stock market was ups and downs. The Shanghai Composite Index basically fluctuated between 2000 points and -2500 points. However, apart from individual stocks, the security listing sector is basically stable, and has achieved better returns and growth.

Hikvision (002415, stock bar) listed in May 2010, when the company achieved total operating income of 3.605 billion yuan, an increase of 71.57%; attributable to shareholders of listed companies net profit of 1.052 billion yuan, an increase of 49.07%. In the first three quarters of 2011, Hikvision achieved operating income of 3.453 billion yuan, an increase of 44.3% year-on-year, and a net profit of 869 million yuan, a year-on-year increase of 32.58%.

Hikvision's earnings per share for the first three quarters of 2011 were 0.87 yuan, net assets per share was 6.20 yuan, and return on net assets was 14.71%.

According to the average monthly growth rate in the first three quarters, Hikvision’s annual operating income exceeding RMB 5 billion in 2011 should not be a problem. As we all know, Hikvision won another safe operation of 7,703 million yuan in Chongqing this year, and the market expectations for the next year and the next year are very promising.

Among security listed companies, video surveillance companies account for about 75%, and video surveillance industry has a strong momentum of development in recent years, so the security listed sector can be said that the majority of blue chip stocks and blue chip stocks.

Overall, the operating conditions of listed security companies in 2011 were generally good, even exceeding the expectations of brokerage firms.

Foreign-funded security companies are making efforts to launch the Hitachi China market to expand the scale of integrated camera business in China. On the first day of 2011, Hitachi will move the Hitachi integrated camera business from Fuzhou to Shanghai and set up a new company for surveillance cameras in China. After the establishment of the new company, the annual output scale of Hitachi's integrated camera movement will reach 300,000 units.

In May 2011, Canon also announced that it had entered the security monitoring market, launched a series of surveillance cameras, and selected China Digital as its general agent for security monitoring products in China. According to the plan, Canon first entered the Chinese market with analog surveillance cameras. In 2012, network surveillance cameras will enter the Chinese market.

In September 2011, South Korea ranked first and had a market share of more than 50% in Korea's security industry. Samsung S1 opened a new company in China. Samsung S1 will use its more than 30 years of experience in security services in South Korea to actively implement strategic plans for exploring the Chinese market.

In the network camera market, Europe has the second largest market share and the fourth largest in the world. Germany's MOBOTIX, which has the world's largest market share in the field of high-definition network cameras with more than megapixels, has also begun to increase the market in China after three years of testing. The pioneering efforts.

At the same time, Tyco, Honeywell, Schneider Electric, Axis, etc., almost without exception, began to increase investment and development in the Chinese market, and began to pay attention to the development of China's second- and third-tier markets and the western market. Axis has established offices in central cities such as Chengdu, and Honeywell has even launched Vista cameras for third and fourth-tier cities.

This shows that with the gradual saturation of domestic first-tier markets and increasingly fierce competition, foreign security companies have begun to change their strategies to enter the second and third-tier cities in China's security. It also shows that just eating high-end markets can no longer meet the growing appetite of foreign security companies.

Interestingly, while the foreign security giants' channels began to sink “down”, domestic technology leaders such as Hikvision and Dahua have begun to try to “eat up” and secretly compete to compete in the high-end market.

It seems that whether it is the primary market, or the secondary or tertiary market, or even the four-tier market, as long as there are attractive cakes, it will lead to strangulation.