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Hesai Group Sponsored ADR (HSAI)
NASDAQ:HSAI
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Hesai Group Sponsored ADR
(NASDAQ:HSAI)
Rating:59Neutral
Price Target:
$22.50
▲(5.63%Upside)
Positive Factors
Earnings Outlook
The company's 2025 outlook is bright with an expected increase in lidar shipments and earnings, driven by mass production of new cost-effective products.
Market Position
Hesai is a major beneficiary of the rapid growth in the global lidar and robotics market, supported by its strong market share and competitive strengths.
Product Launches
Hesai unveiled 'Infinity Eye', the lidar solutions for L2 ADAS / L3 conditional autonomous driving / L4 high-level autonomous driving systems.
Negative Factors
Regulatory Issues
The inclusion of Hesai in the US Department of Defense 1260H List has led to a negative rerating in its share price due to investor concerns over potential investment restrictions.
US Market Exposure
Management expects US revenue to contribute less than 10% in 2025, among which 50% tariff will be borne by Hesai and the other 50% will be borne by Hesai’s clients.
Hesai Group Sponsored ADR (HSAI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.89B
Dividend YieldN/A
Average Volume (3M)3.15M
Price to Earnings (P/E)―
Beta (1Y)1.22
Revenue Growth23.48%
EPS Growth97.67%
CountryUS
Employees1,142
SectorConsumer Cyclical
Sector Strength64
IndustryAuto - Parts
Share Statistics
EPS (TTM)-0.02
Shares Outstanding105,468,800
10 Day Avg. Volume3,178,803
30 Day Avg. Volume3,146,783
Financial Highlights & Ratios
PEG Ratio-19.56
Price to Book (P/B)5.21
Price to Sales (P/S)0.00
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
$25.77Price Target Upside20.99% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
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 makes money primarily through the sale of its advanced LiDAR sensors to automotive manufacturers and technology companies developing autonomous vehicles and ADAS. The company's revenue model is centered around product sales, with a significant portion of its income generated from contracts with leading automotive and tech firms. Additionally, Hesai engages in strategic partnerships and collaborations to expand its market reach and enhance its technological capabilities. The demand for LiDAR technology in autonomous driving and industrial applications plays a crucial role in the company's earnings, as businesses in these sectors continue to invest in next-generation sensing solutions.
Hesai Group Sponsored ADR Earnings Call Summary
Earnings Call Date:May 26, 2025
(Q1-2025)
| % Change Since: 33.04%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Hesai's impressive growth in shipments and revenue, major design wins with multiple OEMs, and a strong reduction in net loss. Despite potential challenges from tariffs and competitive pressures, the company maintains a positive profitability outlook and industry leadership position.Q1-2025 Updates
Positive Updates
Record LiDAR Unit Shipments
Hesai Group shipped nearly 200,000 LiDAR units in Q1 2025, more than tripling the volume from the same period last year, demonstrating exceptional growth.
Significant Revenue Growth
Net revenue increased by 50% year over year, reaching RMB 525.3 million or $752.4 million, supported by strong operational execution and market demand.
Recognition as Industry Leader
Hesai was ranked as the number one global leader in automotive LiDAR market share by Yole Intelligence, with leading positions in the automotive, passenger car, and robo-taxi markets.
Major OEM Partnerships and Design Wins
Secured major design wins with multiple OEMs including Li Auto, Zeekr, and international partnerships, achieving widespread adoption of ATX LiDAR as a standard feature.
Substantial Reduction in Net Loss
Net loss was reduced by 84% year over year, demonstrating effective cost management and operational efficiency.
Positive Profitability Outlook
Guided for GAAP breakeven in Q2 2025, with strong revenue and shipment growth expected to continue.
Dismissal of Patent Infringement Case
Successfully dismissed Ouster's patent infringement case with no conditions, reaffirming the strength of Hesai's IP portfolio.
Negative Updates
Impact of Tariffs on U.S. Revenue
Faced potential short-term shifts in customer demand due to evolving tariff environment, with 5% of total revenue exposed to DDP terms.
ASP Decline Due to Product Mix
Blended ASP expected to decline as ATX LiDAR, a lower-priced model, represents a larger share of shipments.
Competition Concerns
Speculation about competition affecting key clients like Xiaomi and Leapmotor, though no official announcements have confirmed significant impacts.
Company Guidance
During Hesai Group's First Quarter 2025 earnings call, the company provided robust guidance and highlighted significant growth metrics. Notably, shipments of LiDAR units surged over 200% year-over-year to nearly 200,000 units, contributing to a 46% increase in net revenue, which reached RMB 525.3 million ($752.4 million). Impressively, the company reduced its net loss by 84% year-over-year to RMB 70.5 million ($2.4 million). Hesai maintained a healthy gross margin of 42% while trimming operating expenses by 9%. For the second quarter, they forecast net revenues between RMB 680 million ($93.7 million) and RMB 720 million ($99.2 million), anticipating shipments of over 300,000 units, reflecting a year-over-year growth of nearly 250%. The company expects to achieve GAAP breakeven in Q2 and remains confident in its 2025 full-year revenue guidance of RMB 3 to 3.5 billion, with shipment targets of 1.2 to 1.5 million units and gross margin around 40%.Hesai Group Sponsored ADR Financial Statement Overview
Summary
Hesai Group shows solid revenue growth and improving gross margins, but struggles with profitability and cash flow generation. The low leverage and strong equity position provide stability, yet ongoing losses and lack of cash flow highlight areas needing improvement for long-term sustainability.Income Statement
Hesai Group shows consistent revenue growth with a 10.66% increase in the most recent year. Gross profit margin improved to 42.58%, showcasing operational efficiency. However, the company has a persistently negative net profit margin due to sustained losses, although the net loss narrowed compared to the previous year. EBIT and EBITDA margins are negative, highlighting ongoing operational challenges.62
Positive
Balance Sheet
The company's balance sheet reveals a strong equity position with an equity ratio of 65.63%, signifying financial stability. The debt-to-equity ratio is low at 0.18, indicating low financial leverage. However, the return on equity remains negative due to net losses, impacting overall financial health.55
Neutral
Cash Flow
Hesai Group's cash flow statement shows challenges, with no operating or free cash flow reported for the latest year, preventing calculation of growth rates. The absence of positive cash flow metrics suggests potential liquidity issues, although past data indicates some positive operating cash flows.45
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.08B | 1.88B | 1.20B | 720.77M | 415.51M |
| Gross Profit | 884.59M | 661.38M | 471.99M | 381.80M | 238.91M |
| EBITDA | -118.64M | -385.93M | -247.15M | -217.63M | -82.60M |
| Net Income | -102.38M | -475.97M | -300.76M | -244.83M | -107.22M |
Balance Sheet | |||||
| Total Assets | 5.99B | 5.66B | 3.84B | 3.95B | 1.31B |
| Cash, Cash Equivalents and Short-Term Investments | 3.20B | 3.16B | 1.86B | 2.79B | 895.67M |
| Total Debt | 739.26M | 559.24M | 63.59M | 0.00 | 0.00 |
| Total Liabilities | 2.06B | 1.80B | 6.99B | 902.55M | 174.93M |
| Stockholders Equity | 3.93B | 3.86B | -3.15B | 3.05B | 1.14B |
Cash Flow | |||||
| Free Cash Flow | -207.85M | -357.41M | -936.40M | -509.99M | -428.59M |
| Operating Cash Flow | 63.50M | 57.26M | -696.01M | -228.39M | -352.01M |
| Investing Cash Flow | 955.88M | -1.06B | 1.12B | -1.98B | 179.03M |
| Financing Cash Flow | 250.68M | 1.59B | 15.18M | 2.40B | 323.44M |
Hesai Group Sponsored ADR Technical Analysis
Neutral
21.30
Price Trends
20.59
Positive
18.60
Positive
14.69
Positive
Market Momentum
0.27
Positive
50.21
Neutral
29.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSAI, the sentiment is Neutral. The current price of 21.3 is below the 20-day moving average (MA) of 21.92, above the 50-day MA of 20.59, and above the 200-day MA of 14.69, indicating a neutral trend. The MACD of 0.27 indicates Positive momentum. The RSI at 50.21 is Neutral, neither overbought nor oversold. The STOCH value of 29.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 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 Sponsored ADR Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $986.25M | 20.79 | 22.48% | ― | 8.37% | -1.37% | |
64 Neutral | $387.98M | ― | -65.19% | ― | 28.52% | 41.32% | |
63 Neutral | $17.10B | 10.62 | -8.48% | 2.94% | 1.62% | -25.72% | |
59 Neutral | $2.89B | ― | -0.30% | ― | 23.48% | 97.67% | |
47 Neutral | $1.30B | ― | -113.70% | ― | 95.90% | 10.38% | |
46 Neutral | $7.06B | ― | -42.03% | ― | ― | 6.49% | |
44 Neutral | $168.00M | ― | 146.24% | ― | -3.84% | 67.67% |
* Consumer Cyclical Sector Average
Performance Comparison
HSAI
Hesai Group Sponsored ADR
21.30
16.72
365.07%
LAZR
Luminar Technologies
3.20
-22.15
-87.38%
XPEL
XPEL
35.34
-4.29
-10.83%
AEVA
Aeva Technologies
21.49
17.83
487.16%
QS
QuantumScape
11.97
4.93
70.03%
INVZ
Innoviz Technologies
1.92
1.07
125.88%
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.