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1. Company Snapshot

1.a. Company Description

Hesai Group, through with its subsidiaries, engages in the development, manufacture, and sale of three-dimensional light detection and ranging solutions (LiDAR).Its LiDAR products are used in passenger and commercial vehicles with advanced driver assistance systems; autonomous passenger and freight mobility services; and other applications, such as delivery robots, street sweeping robots, and logistics robots in restricted areas.Hesai Group was founded in 2014 and is based in Shanghai, China.

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1.b. Last Insights on HSAI

Hesai Group's recent performance was driven by strong revenue growth, with quarterly net revenues reaching RMB525.3 million (US$72.4 million) in Q1 2025, a significant increase from previous periods. The company's lidar shipments also surged, with 195,818 units shipped in the quarter. Hesai's operational execution and potential partnership with Mercedes-Benz are key strategic milestones that have contributed to its growth. Additionally, the company's management has guided for a robust revenue growth of +56% and a healthy 40% gross margin for full-year FY25, indicating a positive outlook for the company's future performance.

1.c. Company Highlights

2. Hesai Group's Q3 2025 Earnings: A Strong Performance

Hesai Group reported a robust financial performance in Q3 2025, with net revenue surging 47% year-over-year to $112 million. The company's total shipments reached 441,398 units, up 229% year-over-year, driven by strong demand for its LiDAR products. Hesai achieved a record quarterly GAAP net income of RMB 256 million, taking the nine-month GAAP net income to RMB 283 million, exceeding its full-year target of RMB 200 to RMB 350 million one quarter ahead of schedule. The actual EPS came out at $0.25, beating estimates of $0.2159.

Publication Date: Nov -23

📋 Highlights
  • Revenue & Shipment Surge:: Net revenue surged 47% YoY to $112 million, with shipments up 229% to 441,398 units in Q3 2025.
  • Net Income Milestone:: Achieved RMB 256 million GAAP net income (Q3) and RMB 283 million (nine-month total), surpassing annual targets ahead of schedule.
  • HK Listing Success:: Raised $640 million via dual primary listing on Hong Kong Stock Exchange post-greenshoe option.
  • Robotaxi Leadership:: Holds 60-70% global market share in robotaxi LiDAR, with new deals including $40+ million contracts with US and China companies.
  • 2026 Shipment Forecast:: Projects LiDAR shipments to reach 2-3 million units in 2026, driven by L3 autonomous driving adoption and partnerships like BYD’s mass production since Q1 2025.

Revenue Growth and Guidance

The company expects net revenues of $140-$169 million in Q4, representing a year-over-year increase of 39%-67%. For 2026, Hesai forecasts an inflection point, with LiDAR shipments expected to reach at least 2-3 million units. The company's guidance suggests a continued strong growth trajectory, driven by increasing demand for LiDAR technology in the automotive and robotics sectors.

Valuation Metrics

With a P/E Ratio of 140.76 and an EV/EBITDA of 79.06, Hesai's valuation suggests that the market is pricing in significant growth expectations. The company's ROE of 2.53% and ROIC of 0.35% indicate that it is generating returns on its investments, albeit at a relatively low level. Analysts estimate next year's revenue growth at 43.6%, which may justify the current valuation to some extent.

LiDAR Market Leadership

Hesai's CEO, Dr. David Li, emphasized that the company is leading the long-range automotive LiDAR market for seven consecutive months. The company's ATX product has been a market success, with more contracts and larger volumes than competitors. Li noted that even with price declines, Hesai continues to innovate to maintain gross margins, citing the company's structured timeline for releasing each generation of products.

Robotics Business Growth

Hesai is making significant progress in the robotics business, with a 60-70% market share in the global robotaxi LiDAR market. The company has signed new deals with leading robotaxi players, including WeRide, Pony, and Hello Inc., with some models featuring up to eight LiDAR units per vehicle from Hesai. The company's gross profit from the Robotaxi business is expected to grow exponentially, driven by cost reductions and large-scale commercial deployments.

Future Outlook

Beyond LiDAR, Hesai is exploring new areas, including sensing itself, combining sensing capabilities with AI, and general space sensing. The company sees potential in leveraging its high-end sensing semiconductor capability, manufacturing capability, and product iteration into more infrastructure business. With a strong track record of innovation and execution, Hesai is well-positioned to capitalize on the growing demand for LiDAR technology and expand its presence in the robotics and automotive sectors.

3. NewsRoom

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Hesai to Exhibit at CES 2026 with Cutting-Edge ADAS and Robotics Lidar Solutions

Dec -04

Source: prnewswire.com

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Hesai Group Sponsored ADR (NASDAQ:HSAI) Receives Average Recommendation of “Buy” from Brokerages

Nov -27

Source: defenseworld.net

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Li Auto Faces Surge In Bearish Sentiment Ahead Of Q3 Earnings As Tesla Rival Stumbles

Nov -26

Source: feeds.benzinga.com

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Pony AI Q3 Preview: LiDAR Trouble, Fleet Expansion And More—Key Factors That You Must Know

Nov -25

Source: feeds.benzinga.com

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Mobileye Global (NASDAQ:MBLY) vs. Hesai Group (NASDAQ:HSAI) Financial Comparison

Nov -23

Source: defenseworld.net

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Hesai Hits 2025 Profit Target A Quarter Ahead Of Schedule

Nov -12

Source: benzinga.com

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Oklo ($OKLO) | VinFast ($VFS) | Hesai Technology ($HSAI) | Li Auto ($LI) | Wallbox ($WBX)

Nov -12

Source: youtube.com

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Hesai Group (HSAI) Q3 2025 Earnings Call Transcript

Nov -11

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.27%)

6. Segments

Light Detection and Ranging

Expected Growth: 13.33%

Hesai Group's 13.33% growth in Light Detection and Ranging (LiDAR) is driven by increasing adoption in autonomous vehicles, rising demand for high-precision 3D mapping, and growing investments in smart city infrastructure. Additionally, advancements in LiDAR technology, decreasing costs, and expanding applications in industries such as surveying, agriculture, and robotics are also contributing to this growth.

Gas Detection

Expected Growth: 9.27%

Hesai Group's 9.27% growth in Gas Detection is driven by increasing demand for industrial safety, stringent government regulations, and rising adoption of IoT-based gas sensors. Additionally, growing investments in oil and gas exploration, and expanding applications in wastewater treatment and chemical processing industries contribute to the segment's growth.

7. Detailed Products

LiDAR Sensors

High-precision LiDAR sensors designed for various applications, including autonomous vehicles, surveying, and mapping.

Perception Software

Advanced software solutions for processing and analyzing LiDAR point cloud data, enabling accurate object detection and tracking.

ADAS Solutions

Advanced driver-assistance systems (ADAS) designed to enhance vehicle safety and autonomy, including features like lane departure warning and adaptive cruise control.

Robotics and Automation

Customized robotics and automation solutions for industries like logistics, manufacturing, and healthcare, utilizing LiDAR and computer vision technologies.

Surveying and Mapping

High-accuracy surveying and mapping solutions utilizing LiDAR and photogrammetry technologies, for applications like infrastructure planning and environmental monitoring.

8. Hesai Group's Porter Forces

Forces Ranking

Threat Of Substitutes

Hesai Group's products are moderately substitutable, as customers have some alternatives, but they are not easily replaceable.

Bargaining Power Of Customers

Hesai Group's customers have limited bargaining power due to the company's strong brand reputation and diversified product offerings.

Bargaining Power Of Suppliers

Hesai Group's suppliers have moderate bargaining power, as the company relies on a few key suppliers, but has some flexibility in its supply chain.

Threat Of New Entrants

The threat of new entrants is high in Hesai Group's industry, as the barriers to entry are relatively low, and new companies can easily enter the market.

Intensity Of Rivalry

The intensity of rivalry in Hesai Group's industry is high, as there are many competitors, and the market is highly competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 12.65%
Debt Cost 3.95%
Equity Weight 87.35%
Equity Cost 3.95%
WACC 3.95%
Leverage 14.48%

11. Quality Control: Hesai Group passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 4.8/10

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

20.1$

Current Price

20.1$

Potential

-0.00%

Expected Cash-Flows