With the development of security and information technology in the security industry, active security concepts have gradually emerged and become an important direction for the development of the industry. In the field of financial security, active security management concepts are particularly prominent in the detection, transmission, reception, and disposal of security information. With the opening of the second half of 2014, the performance of the industry in the first half of the year has become the market share that many companies have been waiting for. The market trends of giants such as Hikvision, Dahua, etc. are typical examples of future trends in the industry.

From the perspective of the stock market, it is well-known that both Dahua and Hikvision have previously represented growth stocks and Baima shares, and their performance has been excellent, and share prices have continued to rise for many years. DaHua shares were listed on May 20th, 2008. According to Wind's data, net profit attributable to shareholders of the parent company after its listing maintained high growth year after year, except that in 2008 and 2009 it only increased by more than 10%. The growth rate for at least 4 years is at least 40%. In 2010, the net profit growth even reached 122%. In the first quarter of this year, there was also a growth rate of 41.35%.

The ups and downs of UOB's share price are also in line with the growth rate of net profit. The net profit growth in 2008 and 2009 was normal. In the past two years, the stock price also basically oscillated sideways. It did not begin to rise until mid-November 2009, and then it began a 4-year rally. Calculated according to the complex price, its listing fell to the lowest 1.36 yuan / share, the highest rose to 47.40 yuan / share, range increase of nearly 34 times.

Another security leader Hikvision looks similar. It was listed on May 28, 2010. After the IPO, the annual growth rate of net profit has generally remained above 40%, and the lowest growth rate was 28.56% in 2009. This is the only year when the growth rate is lower than 40%. After Hikvision's listing, the stock price also performed well. According to the complex price, the lowest price of 7.31 yuan/share in July 2010 compared with the highest price of 28.10 yuan/share in October 2013, which was nearly three times as much. Compared with UOB shares, Hikvision's average annual net profit growth is also relatively low, which is one of the reasons for its relatively low price increase, but Hikvision's market value is much larger .

With the rise of two shares for many years, the profit-making disk also began to flee. On October 10 last year, both stocks rose to their highest levels in history and fell back. They have been adjusted since then and have fallen for more than 8 months. There are still no signs of bottoming out. The biggest drop in UOB’s shares was more than 50%. Hikvision’s biggest drop was relatively small, but it also exceeded 40%.

The stock market is unsatisfactory. Analysis of the reasons for summing up the market's analysis of Dahua and Hikvision has led to its decline for three reasons: First, changes in market preferences. White horse growth stocks as a whole have been abandoned by the market. For example, in addition to the above two stocks, Baima stocks, such as Goerac and Yili, all ended in successive years of rising in the second half of 2010, and turned to deeper adjustments.

The second reason is that the market is worried about government finance and real estate investment. From the perspective of the stock price trend of Hikvision and Dahua, the two companies' stock prices are basically the same, which also reflects the market's concerns about the entire security industry to a certain extent. The concerns of the two stocks are the whole industry. .

The third concern is that the company itself has encountered growth ceilings. The market is more worried about the company's market value growth. The maximum peak market value of Dahua's shares has exceeded 50 billion yuan, and the market value of Hikvision's highest peak is more than 110 billion yuan. The market may think that its market growth has been limited. The market value needs to rely on revenue support. In 2013, Hikvision's revenue exceeded 10 billion yuan, and UOB's revenue reached 5.4 billion yuan. The market believes that the two companies have begun to face the ceiling of income.

The market turmoil does not affect the development of the security module, and the future growth clearly demonstrates the collapse of Dahua and Hikvision, and brokerage firms have issued research reports to support it. Guosen Securities believes that the security industry and the two companies themselves have not changed much. Currently, Hikvision and Dahua have already had significant investment value. It is expected that by 2017, the total market size of the security industry is expected to grow to 170 billion US dollars, and the market space is enough to support the growth of the leading company by 10 times. In addition, the security industry trend toward IP, competition from product to solution competition, good leading companies, market share will continue to focus on leading companies.

On the evening of July 18, Hikvision disclosed the 2014 semi-annual report, and the net profit attributable to the shareholders of the listed company was RMB 1.52 billion, a year-on-year increase of 54.17%. Changjiang Securities believes that the high growth of the company's performance has broken the market's concerns about the growth of the company. At the same time, excellent gross profit performance also shows the company's strong competitiveness.

Ping An Securities previously also commented on the quarterly report of Dahua Co., Ltd., saying that as a leading security company, Dahua shares are only a matter of time. The growth trend of the security industry has not changed, the demand for the industry remains strong, the penetration rate of HD is still not high, and the future growth is clear.

In addition, as for market changes, Guosen Securities believes that market preferences are constantly changing and will correct itself; when the same stocks are both sought after by the market and suppressed by the market, the market pendulum benefits will be brought. The restoration of valuations and the sharp rebound in stock prices.