Recently, trade friction between China and the United States has escalated, and the United States has taken unfair measures to suppress Chinese science and technology enterprises, especially in the field of chips. China must rely on independent innovation in order to develop high-tech industries and not be subjected to others. In recent years, China's science and technology enterprises have made continuous progress, and a number of excellent enterprises have emerged. Their products are in the leading position in the world. Among them, the development of chips has also made some progress. For example, in China's security industry, many chips can be independent; Huawei chips have formed a diversified system. However, China still needs to see the gap and make continuous progress in key technical areas.
Source21st Century Economic Report (ID: jbd21)
ReporterTaoli Shanghai Report
Trees want to be quiet but the wind does not stop. Haikangwei may be one of the more technology companies listed by the U.S. government.
It is reported that the US government is considering limiting Haiconway's ability to buy American technology. The U.S. Department of Commerce may require U.S. companies to obtain government approval before supplying components to Haiconway to restrict the company's access to technologies that help support its equipment.
Regarding the proportion of U.S. suppliers to domestic suppliers, the aforementioned senior Haicongwei personages did not disclose more to reporters.
However, even if there is no restriction on the supply side, Haikangwei's overseas business will still be affected. According to the company's earnings data,In 2018, Haikangwei's overseas revenue accounted for 28.47% of the company's total revenue, while American market business accounted for about 20% of its overseas business, accounting for 6% of the company's overall revenue.
China Merchants Securities Electronics Industry Analyst Fang Bing in an interview with 21st Century Economic Reporter believes that,As Haikang is a public company, the report quality should be considered. Therefore, the action is relatively limited, unable to reserve large-scale inventory like Huawei. However, in Haikang Dahua's chip supply chain, the core IPC processor has basically been localized. The main suppliers of memory chips are from Japan and Korea. The domestic substitution of analog chips is accelerating.In the aspect of AI chips, domestic AI chips manufacturers such as Hess and Cambrian have perfect product mix at the inference end, which can replace international manufacturers such as Yingweida.
Security industry US market may suffer setbacks
Photo Source: Tubu
Haikang Video is a leading enterprise in domestic security video surveillance. According to the IHS report, Haikangwei has been the world's largest video surveillance industry for seven consecutive years, accounting for 22.6% of the global video surveillance market share. In 2018, Haikangwei achieved 49.837 billion yuan in total operating income, an increase of 18.93% over the same period last year; the net profit of shareholders belonging to listed companies was 11.353 billion yuan, an increase of 20.64% over the same period last year, and the overall gross profit rate of the company in 2018 was 44.85%.
Even with high gross margins, Haikangwei made a restructuring in 2018. The company divides its domestic business into three business groups: PBG (Public Service Group), EBG (Enterprise Group), SMBG (Small and Medium-sized Enterprise Group). Among them, PBG is established on the basis of public security, transportation and judicial departments, mainly providing support for urban services and governance. EBG is based on traditional finance, energy, building, culture, education and health, and mainly serves the traditional large-scale enterprise market. SMBG is based on the traditional channel distribution management team and mainly serves the market of small and medium-sized enterprises.
In addition, the company is also actively going out while deepening its vertical market distribution to the domestic market. According to the 2018 financial report, the company realized revenue of 35.646 billion yuan and 14.190 billion yuan at home and abroad, increasing by 14.32% and 24.79% respectively. The growth of overseas income should not be underestimated, with profits accounting for 28.48%.
The impact of uncertain international trading environment has become a risk for the company.According to Hu Yangzhong, general manager of Haikang Weiwei, the company has more balanced overseas sales, not only in developed and developing countries, but also in Southeast Asia and ASEAN.
Now it seems that its business in the United States is highly likely to be affected.A person close to Haikangwei told the 21st Century Economic Reporter.
High Domestic Substitution in Supply Chain
Photo Source: Tubu
A spokesman for the Ministry of Foreign Affairs, Mr. Lu, said at a regular press conference that the Chinese side has repeatedly shown some of the practices of the Chinese side against the US's misuse of the country's power, the indiscriminate use of black and the suppression of other national enterprises, including Chinese enterprises. China's attitude is clear and consistent.
At present, Haikang Wei Vision and Dahua shares said that they did not receive substantive news. Dahua Dong Secret Office responded that the reporter said,
As the first link of the security industry chain, upstream chip manufacturers affect the function, technical indicators, stability, energy consumption, cost of the entire security system, and play a key role in the future development direction of the security industry. With the development of artificial intelligence technology, the deep learning algorithm chip scheme has become the focus of security industry. Among the domestic manufacturers, Haisi (Huawei), Guokewei, Zhongxing Weiwei, Beijing Junzheng, Fuhan Weiwei, Jingjiawei, Cambrian, Shenjian, Zhongke Dawning and so on have deep layout. Can Haikangwei find a supply chain replacement?
CITIC Securities pointed out that in the product structure of Haikangwei, most of the back-end servers needed to be imported from the United States, including Intel CPU, Yingweida GPU, Seagate, Western data mechanical hard disk, Texas Instruments, Anbar power management chips and so on, are products that may be affected by the U.S. fixed-point attack. This kind of server products are currently localized. There is no substitute.
In addition, Haikang Wei Vision front-end camera and AI front-end products component composition, basically can achieve localization replacement.Domestic security enterprises have a high degree of product line coincidence, and the future competitive point lies in other differentiated technologies such as supply chain.
Yan Zhanmeng, Director of Counterpoint Research, told 21st Century Economic Reporters that domestic manufacturers have certain technical reserves at AI, processor, memory storage and other levels, and the impact is still relatively limited. At the same time, for domestic industrial chain companies, it can also be said to be an opportunity, of course, there will also be challenges.
On the other side of the trade friction, it may be American companies such as Intel that may be injured. Just last month, Intel released results for the first quarter of 2019, which ended March 31. Revenue for the quarter was $16.1 billion, roughly the same as in the same period last year; net profit was $4 billion, down 11 percent from last year. Shares fell more than 7% after Intel's earnings were released on the same day. Intel CEO Robert
Now it seems that if the United States expands,