Hesai Group Class B (HK:2525)
:2525
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Hesai Group Class B
(2525)
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Rating:67Neutral
Price Target:
HK$166.00
▼(-10.75% Downside)
Action:N/A
Date:06/02/26
The score is driven primarily by improving fundamentals (profitability rebound and strong growth with low leverage) and a constructive earnings outlook (strong shipment/revenue guidance and backlog). These positives are tempered by weak cash-flow conversion and clearly bearish technical signals, while valuation remains demanding given the high P/E and no stated dividend yield.
Positive Factors
Market Leadership
Sustained #1 share in long-range ADAS (global and China) signals durable competitive advantages: scale in production, established OEM relationships, and stronger win rates for future design-ins. Market leadership supports pricing power, supply-chain leverage, and long-term customer stickiness across automotive programs.
Negative Factors
Weak Cash‑Flow Conversion
Persistent negative free cash flow despite reported profits increases reliance on balance-sheet financing and raises execution risk. If working-capital or capex needs rise, the company may face funding strain that could delay investments or require dilutive financing, making profit durability harder to trust.
Read all positive and negative factors
Positive Factors
Negative Factors
Market Leadership
Sustained #1 share in long-range ADAS (global and China) signals durable competitive advantages: scale in production, established OEM relationships, and stronger win rates for future design-ins. Market leadership supports pricing power, supply-chain leverage, and long-term customer stickiness across automotive programs.
Read all positive factors
Hesai Group Class B (2525) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$25.58B
Dividend YieldN/A
Average Volume (3M)1.10M
Price to Earnings (P/E)46.6
Beta (1Y)2.05
Revenue Growth44.35%
EPS GrowthN/A
CountryHK
Employees1,142
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)3.31
Shares Outstanding130,143,360
10 Day Avg. Volume808,382
30 Day Avg. Volume1,100,041
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)0.35
Price to Sales (P/S)1.05
P/FCF Ratio-14.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$241.21Price Target Upside29.68% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)4.13
Revenue Forecast (FY)HK$5.01B
Hesai Group Class B Business Overview & Revenue Model
Company Description
Hesai Group, through with its subsidiaries, engages in the development, manufacture, and sale of three-dimensional light detection and ranging solutions (LiDAR) in Mainland China, Europe, North America, and internationally. The company offers gas ...
Hesai Group Class B Earnings Call Summary
Earnings Call Date:May 19, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
The call was largely positive: management reported strong top‑line growth (Q1 revenues +30% YoY), healthy gross margins (>39%), profitable core lidar operations (RMB 42M operating profit), accelerating shipments, clear market leadership (43% global ADAS share, 55% China share) and several high‑profile design wins including Mercedes‑Benz. At the same time, the company is investing heavily in its Strategic Growth Initiatives (Kosmo and robotic actuation), which produced an SGI operating loss (RMB 51M) and added to operating expenses (+9% YoY). ASP pressure from mix shifts is noted but framed as a sign of mainstream adoption, and management provided an optimistic multi‑year scaling path for SGI. Overall, the positive operational momentum, technology road map and customer wins outweigh the near‑term investment‑related negatives.Positive Updates
Strategic Mercedes‑Benz Partnership for Level 3
Confirmed strategic lidar partner and supplier for Mercedes‑Benz Level 3 models (Europe and China) with production supported by new Galileo manufacturing center in Thailand — a major customer validation and global expansion milestone.
Negative Updates
SGI Operating Loss and Early‑Stage Investment
Strategic Growth Initiatives (SGI) recorded an operating loss of RMB 51 million in Q1 as management intentionally invests in Kosmo and other initiatives; SGI is early commercial and loss‑making near term.
Read all updates
Q1-2026 Updates
Positive
Negative
Strategic Mercedes‑Benz Partnership for Level 3
Confirmed strategic lidar partner and supplier for Mercedes‑Benz Level 3 models (Europe and China) with production supported by new Galileo manufacturing center in Thailand — a major customer validation and global expansion milestone.
Read all positive updates
Company Guidance
The company guided Q2 2026 revenues of RMB 850–900 million (USD 123–130 million) with roughly 650,000 lidar shipments, reaffirmed full‑year 2026 lidar shipment guidance of 3.0–3.5 million units (about double 2025’s 1.6 million), and said its SGI segment will start contributing in Q2 with ~RMB 100 million of 2026 revenue (targeting ~RMB 500 million in 2027); Q1 results were RMB 681 million (USD 99 million, +30% YoY) on >471,000 units with gross margin >39%, lidar operating profit of RMB 42 million and SGI operating loss of RMB 51 million, GAAP net income of RMB 18 million (USD 2.7 million) and non‑GAAP net income of RMB 48 million (USD 6.9 million), backlog >6 million units, and management expects sequentially stronger revenue momentum, SOPs such as ETX in H2 2026, initial Kosmo/demo shipments and “initial 8‑digit” revenues this year while vehicle lidar content rises from ~USD 200/car last year to ~USD 350 (entry multi‑lidar) and USD 500–1,000 for advanced Level‑3 configurations.Hesai Group Class B Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
84
Very Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.18B | 3.03B | 2.08B | 1.88B | 1.20B | 111.37M |
| Gross Profit | 1.31B | 1.27B | 884.59M | 661.38M | 471.99M | 73.55M |
| EBITDA | 522.46M | 609.50M | 43.40M | -385.93M | -247.15M | -40.85M |
| Net Income | 471.74M | 435.88M | -102.38M | -475.97M | -300.76M | -37.83M |
Balance Sheet | ||||||
| Total Assets | 10.90B | 11.26B | 5.99B | 5.66B | 3.84B | 761.41M |
| Cash, Cash Equivalents and Short-Term Investments | 5.72B | 4.76B | 3.20B | 3.14B | 1.86B | 539.61M |
| Total Debt | 963.17M | 999.48M | 739.26M | 559.24M | 63.59M | 0.00 |
| Total Liabilities | 1.98B | 2.30B | 2.06B | 1.80B | 997.66M | 1.24B |
| Stockholders Equity | 8.93B | 8.96B | 3.93B | 3.86B | -3.15B | -479.82M |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -225.21M | -207.85M | -357.41M | -936.40M | -86.40M |
| Operating Cash Flow | 0.00 | 116.99M | 63.50M | 57.26M | -696.01M | -44.00M |
| Investing Cash Flow | 0.00 | -5.55B | 955.88M | -1.06B | 1.12B | -305.99M |
| Financing Cash Flow | 0.00 | 4.35B | 250.68M | 1.59B | 15.18M | 371.43M |
Hesai Group Class B Risk Analysis
Hesai Group Class B disclosed 91 risk factors in its most recent earnings report. Hesai Group Class B reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
If we fail to complete the CSRC filing and other procedures for any future offshore offering or listing, we may be subject to sanctions imposed by the relevant mainland China governmental authority. Q4, 2023
2.
Uncertainties in the interpretation and enforcement of laws, rules and regulations, typically existing in the civil law systems, could materially and adversely affect us. Q4, 2023
3.
We have been added to the list of Chinese companies with alleged ties to the Chinese military issued by the U.S. government agencies and our business and results of operations may be affected. Q4, 2023
Hesai Group Class B Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | HK$3.28B | 7.84 | 33.52% | 9.59% | 12.18% | 1.81% | |
70 Outperform | HK$24.10B | 8.97 | 9.88% | 2.03% | 0.22% | -23.32% | |
67 Neutral | HK$25.58B | 46.58 | 6.08% | ― | 44.35% | ― | |
65 Neutral | HK$42.66B | 13.31 | 12.26% | 1.39% | 11.26% | 15.82% | |
62 Neutral | HK$12.95B | 15.79 | 4.88% | 1.02% | 7.11% | 65.26% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
45 Neutral | HK$1.31B | 54.48 | 3.06% | ― | 2.54% | -84.68% |
* Consumer Cyclical Sector Average
HK:2525
Hesai Group Class B
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Hesai Group Class B Corporate Events
Hesai Group Plans Eight-for-One Share Split and Change in Board Lot Size
May 26, 2026
Hesai Group plans to subdivide each existing share into eight lower-par-value shares, expanding its authorized share count to 8 billion while keeping total share capital unchanged. The move includes adjusting the American depositary share ratio so...
Hesai Group Sets AGM to Approve 2025 Results, Board Elections and New Share Issuance Mandate
May 26, 2026
Hesai Group has convened its annual general meeting for June 26, 2026, in Suzhou, China, where shareholders will review and adopt the audited consolidated financial statements for the year ended December 31, 2025, along with the reports of the boa...
Hesai Group Grants 139,120 RSUs to Employees Under 2021 Incentive Plan
May 20, 2026
Hesai Group has granted 139,120 restricted share units to 37 eligible employees under its 2021 share incentive plan, with each RSU corresponding to a Class B ordinary share. The awards, granted at no purchase price, will vest in four equal annual ...
Hesai Group Publishes Unaudited First-Quarter 2026 Results and Issues Investor Caution
May 19, 2026
Hesai Group has released its unaudited financial results for the quarter ended March 31, 2026, prepared under U.S. Generally Accepted Accounting Principles rather than International Financial Reporting Standards. The company, listed in both Hong K...
Hesai Group Sets Record Date for 2026 AGM and Clarifies Voting Procedures
May 8, 2026
Hesai Group has scheduled its 2026 annual general meeting for June 26, 2026, in Hong Kong, and set May 22, 2026, as the record date to determine which holders of Class A and Class B ordinary shares may attend and vote. The company also detailed pr...
Hesai Details Pricing and Controls for Connected Transactions With Sharpa
Apr 10, 2026
Hesai Group has issued a supplemental announcement detailing the pricing policy and internal controls for its continuing connected transactions with Sharpa under a Supply of Products Framework Agreement. The company will price robotic actuators an...
Hesai Group Clarifies Auditor Procedures for 2025 Annual Results
Mar 26, 2026
Hesai Group issued a clarification regarding its previously announced unaudited annual consolidated results for the year ended December 31, 2025. The company confirmed that its auditor, Deloitte Touche Tohmatsu, carried out agreed-upon procedures ...
Hesai Sets Connected-Party Supply Deal With Sharpa for LiDAR and Robotics
Mar 25, 2026
Hesai Group has signed a Supply of Products Framework Agreement with Sharpa, under which it will provide LiDAR products and robotic actuators, along with related manufacturing and integration services, from March 25, 2026, to December 31, 2026. Th...
Hesai Group Grants 785,356 RSUs to Directors and Staff Under 2021 Equity Plan
Mar 25, 2026
Hesai Group has granted a total of 785,356 restricted share units under its 2021 equity plan to four directors and 70 employees, representing the same number of Class B ordinary shares with no purchase price. The awards, tied to a market price ref...
Hesai Group Publishes Unaudited Q4 and Full-Year 2025 Results
Mar 24, 2026
Hesai Group has released its unaudited financial results for the fourth quarter and full year ended December 31, 2025, prepared under U.S. GAAP and filed in accordance with U.S. SEC requirements. The disclosure, which may contain inside informatio...
Hesai Group Turns Profitable as Lidar Shipments and Market Share Surge in 2025
Mar 24, 2026
Hesai Group reported a surge in lidar shipments for 2025, with ADAS lidar units more than tripling and robotics lidar volumes increasing over fourfold, lifting total shipments to more than 1.6 million units. Net revenues rose 45.8% to RMB3,027.6 m...
Hesai Group Sets March 24 Board Meeting and Earnings Call for 2025 Results
Mar 4, 2026
Hesai Group has scheduled a board meeting for March 24, 2026, to review and approve its quarterly results for the three months ended December 31, 2025, as well as its full-year financial results for 2025, followed by their public release. The timi...
Hesai Group Shareholders Approve Amended Articles at Extraordinary Meeting
Mar 3, 2026
Hesai Group reported the voting results of its extraordinary general meeting and separate Class A and Class B meetings held on March 3, 2026 in Suzhou, China. The meetings involved all 157,142,211 issued shares, and no shareholders were required t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.