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Hesai Group Sponsored ADR (HSAI)
NASDAQ:HSAI
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Hesai Group Sponsored ADR
(NASDAQ:HSAI)
54Neutral
Positive Factors
Market Leadership
Hesai is a beneficiary given its #1 market share in the global lidar industry along with its competitive strengths.
Product Development
Bright 2025 outlook is set to be supported by mass production of new cost-effective USD200 ATX lidar and continued ramp up of robotic lidars.
Negative Factors
Regulatory Concerns
Hesai was added into the US Department of Defence 1260H List, which has resulted in negative rerating in its share price due to shareholder concerns over potential investment restrictions.
Valuation Concerns
Hesai is currently trading at forward EV/sales multiple of 5.4x and forward EV/EBITDA of 39x, with ongoing ADA/AD/robotics launches seen as major positive catalysts.
Hesai Group Sponsored ADR (HSAI) vs. S&P 500 (SPY)
Market Cap
$2.22B
Dividend YieldN/A
Average Volume (3M)5.63M
Price to Earnings (P/E)―
Beta (1Y)1.63
Revenue Growth9.07%
EPS Growth78.76%
CountryUS
Employees1,122
SectorConsumer Cyclical
Sector Strength55
IndustryAuto - Parts
Share Statistics
EPS (TTM)-0.11
Shares Outstanding97,444,954
10 Day Avg. Volume4,923,595
30 Day Avg. Volume5,629,138
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$26.56Price Target Upside54.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
Hesai Group Sponsored ADR Business Overview & Revenue Model
Company DescriptionHesai 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.
How the Company Makes MoneyHesai Group generates revenue primarily through the sale of its lidar sensors to automotive manufacturers and technology companies focused on autonomous driving and robotics. The company's key revenue streams include direct sales of hardware products, licensing of its technology, and long-term supply agreements with major industry players. Strategic partnerships with automotive OEMs and technology firms also play a significant role in its revenue generation by ensuring steady demand and fostering innovation through collaborative development projects.
Hesai Group Sponsored ADR Financial Statement Overview
Summary
Hesai Group shows revenue growth and a solid equity position, but struggles with profitability and cash flow. Despite a strong equity ratio and low leverage, persistent negative income and cash flow pose significant challenges.Income Statement
The income statement shows a pattern of increasing revenue over the years, with a revenue growth rate of 2.21% from 2023 to TTM. However, the company is struggling with profitability, evident from consistently negative net income, leading to a negative net profit margin of -20.34% for TTM. The gross profit margin has improved to 43.52% in TTM, a positive sign. Nonetheless, negative EBIT and EBITDA margins at -24.72% and -19.83%, respectively, highlight ongoing operational challenges.45
Neutral
Balance Sheet
The balance sheet reflects a stable equity base with stockholders' equity at 66.99% of total assets in TTM, indicating a strong equity ratio. The debt-to-equity ratio is low at 0.18, suggesting limited reliance on debt financing. However, the company's return on equity (ROE) remains negative due to negative net income, reflecting challenges in generating returns for shareholders.50
Neutral
Cash Flow
Cash flow analysis reveals challenges, as the company reported zero free cash flow in the latest TTM period, down from -357 million previously, indicating issues in generating cash. The zero operating cash flow to net income and free cash flow to net income ratios point to potential cash management and operational efficiency issues.30
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.92B | 1.88B | 1.20B | 720.77M | 415.51M | 348.08M | Gross Profit |
| 835.02M | 661.38M | 471.99M | 381.80M | 238.91M | 244.71M | EBIT |
| -474.29M | -571.59M | -378.22M | -265.29M | -101.81M | 162.53M | EBITDA |
| -380.44M | -385.93M | -247.15M | -217.63M | -82.60M | 21.77M | Net Income Common Stockholders |
| -390.25M | -475.97M | -300.76M | -244.83M | -107.22M | -120.22M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.03B | 3.16B | 1.86B | 2.79B | 895.67M | 1.02B | Total Assets |
| 0.00 | 5.66B | 3.84B | 3.95B | 1.31B | 1.24B | Total Debt |
| 0.00 | 559.24M | 63.59M | 0.00 | 0.00 | 0.00 | Net Debt |
| 1.03B | -995.34M | -849.69M | -449.35M | -256.69M | -112.74M | Total Liabilities |
| 0.00 | 1.80B | 6.99B | 902.55M | 174.93M | 313.15M | Stockholders Equity |
| 929.21M | 3.86B | -3.15B | 3.05B | 1.14B | -169.43M |
| Cash Flow | Free Cash Flow | ||||
| 0.00 | -357.41M | -936.40M | -509.99M | -428.59M | 6.59M | Operating Cash Flow |
| 0.00 | 57.26M | -696.01M | -228.39M | -352.01M | 46.17M | Investing Cash Flow |
| 0.00 | -1.06B | 1.12B | -1.98B | 179.03M | -779.50M | Financing Cash Flow |
| 0.00 | 1.59B | 15.18M | 2.40B | 323.44M | 739.74M |
Hesai Group Sponsored ADR Technical Analysis
Negative
17.23
Price Trends
17.57
Negative
13.96
Positive
9.17
Positive
Market Momentum
-0.30
Positive
48.35
Neutral
21.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSAI, the sentiment is Negative. The current price of 17.23 is below the 20-day moving average (MA) of 18.79, below the 50-day MA of 17.57, and above the 200-day MA of 9.17, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 48.35 is Neutral, neither overbought nor oversold. The STOCH value of 21.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HSAI.
Hesai Group Sponsored ADR Risk Analysis
Hesai Group Sponsored ADR disclosed 91 risk factors in its most recent earnings report. Hesai Group Sponsored ADR 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 0 New Risks
Hesai Group Sponsored ADR Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | $12.18B | 11.09 | -1.08% | 3.77% | 1.26% | -19.82% | |
56 Neutral | $469.91M | ― | -53.83% | ― | 33.41% | 81.07% | |
54 Neutral | $2.22B | ― | -2.44% | ― | 9.07% | 78.76% | |
53 Neutral | $397.22M | ― | -92.90% | ― | 110.23% | 12.96% | |
43 Neutral | $221.27M | ― | 146.24% | ― | 8.05% | 58.44% | |
43 Neutral | $10.84M | ― | -160.65% | ― | -86.20% | 67.94% | |
40 Underperform | $123.30M | ― | -81.61% | ― | 16.25% | 32.95% |
* Consumer Cyclical Sector Average
Performance Comparison
HSAI
Hesai Group Sponsored ADR
16.83
11.79
233.93%
LAZR
Luminar Technologies
5.00
-25.15
-83.42%
AEVA
Aeva Technologies
7.31
3.14
75.30%
INVZ
Innoviz Technologies
0.57
-0.91
-61.49%
OUST
Ouster
8.09
-1.90
-19.02%
LIDR
AEye Inc
0.54
-0.74
-57.81%
Hesai Group Sponsored ADR Earnings Call Summary
Earnings Call Date: Mar 10, 2025 | % Change Since: 7.62% | Next Earnings Date: May 27, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in LiDAR shipments, profitability milestones, and strategic expansions in both automotive and robotics markets. Despite a decline in gross margins and seasonal revenue impacts, the company's projections for 2025 signal robust growth and market leadership.Highlights
Record-Breaking LiDAR Shipments
Hesai shipped over 500,000 LiDAR units in 2024, achieving a growth rate of more than doubling each year for 4 consecutive years.
First LiDAR Company with Non-GAAP Profit
Hesai became the world's first LiDAR company to achieve a full-year non-GAAP net profit while maintaining solid positive operating and net cash flows.
Projected Growth for 2025
Hesai projects LiDAR shipments of 1.2 million to 1.5 million units and net revenues of RMB3 billion to RMB3.5 billion for 2025.
New Product Launch and Adoption
The ATX LiDAR, priced at $200, is gaining traction with 11 OEMs and is projected to contribute significantly to 2025 shipments.
Expansion in Robotics Market
Hesai's JT Mini LiDAR is redefining robotics navigation, with a partnership for mobile robotic lawnmowers forecasting a six-digit order in 2025.
Global Expansion
Hesai secured an exclusive design win with a top European OEM for a multi-year program covering both ICE and EV platforms.
Lowlights
Gross Margin Decline
Blended gross margin decreased to 39% in Q4 2024, down from the third quarter due to a decrease in higher-margin NRE revenues and a shift in product mix toward ADAS shipments.
Seasonality Impact on Revenue
Quarter-over-quarter revenue growth was lower due to seasonal factors, impacting the first quarter of 2025.
Company Guidance
During the Hesai Group's Fourth Quarter and Full Year 2024 Earnings Conference Call, the company provided robust guidance for 2025, targeting LiDAR shipments between 1.2 million and 1.5 million units, with approximately 200,000 being high-margin robotic LiDAR units. They aim to achieve net revenues of RMB3 billion to RMB3.5 billion and anticipate GAAP profitability ranging from RMB200 million to RMB350 million. The company also expects to maintain a blended gross margin of around 40% and projects non-GAAP profitability between RMB350 million and RMB500 million, marking a significant increase from the non-GAAP breakeven in 2024. This guidance reflects Hesai's confidence in their market leadership and the growing adoption of LiDAR technology in both the automotive and robotics sectors.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.