Hesai Group Sponsored ADR (HSAI) AI Stock Analysis

• Market Cap: $4.33B
• Dividend Yield: N/A
• Average Volume (3M): 1.71M
• Price to Earnings (P/E): 58.8
• Beta (1Y): 1.64
• Revenue Growth: 43.16%
• EPS Growth: N/A
• Country: US
• Employees: 1,142
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.26
• Shares Outstanding: 129,143,360
• 10 Day Avg. Volume: 2,009,246
• 30 Day Avg. Volume: 1,710,296
• PEG Ratio: 1.61
• Price to Book (P/B): 3.31
• Price to Sales (P/S): 6.27
• P/FCF Ratio: -62.69
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 2.76
• Enterprise Value/Ebitda: 5.63
• 1Y Price Target: $29.90
• Price Target Upside: 9.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.65
• Revenue Forecast (FY): $654.98M

• Rating: 62 Neutral
• Price Target: $28.00 ▲(2.98% Upside)

The score is driven primarily by strong earnings-call guidance and momentum indicators (uptrend with positive MACD), tempered by weaker financial statement cash flow/profitability signals and a high P/E valuation with no dividend yield provided.

Positive Factors

Revenue & Shipments Growth

Sustained high revenue and unit shipment growth signals durable OEM adoption and expanding addressable market. Consistent quarter-over-quarter scale supports improving unit economics and bargaining power with suppliers, enabling long-term margin recovery and stronger operating leverage as volumes rise.

Manufacturing Scale & Market Share

Achieving million‑unit production demonstrates operational scale and manufacturing know‑how that create barriers to entry. Scale enables cost reductions, reliability for automotive OEM integration, and faster delivery for high‑volume ADAS programs, reinforcing Hesai’s structural advantage in long‑range LiDAR supply.

Capital Raise & Financial Headroom

A material IPO raise meaningfully strengthens the company's capital base, funding capacity expansion and R&D without heavy reliance on debt. Combined with low reported leverage, this capital gives management flexibility to invest in scale, new product development, and strategic partnerships over the medium term.

Negative Factors

Operating Cash Flow Weakness

Absence of positive operating and free cash flow exposes the firm to working capital and investment funding risk as it scales production. Even with equity financing, persistent cash flow deficits can force repeated capital raises or constrain timing of capacity expansions and R&D, increasing execution risk.

Negative Profitability Metrics

Despite revenue growth and higher gross margins, sustained negative net and operating margins indicate core profitability issues. Continued losses limit ROE and free cash generation, weakening ability to self‑fund growth and making long‑term margin normalization dependent on sustained ASPs and cost reductions.

ASP Pressure & Competitive Intensity

Structural shift toward lower‑priced ADAS units and aggressive competitor product launches risk commoditizing portions of Hesai's portfolio. Downward pricing pressure can erode gross margins over time, forcing tradeoffs between volume growth and margin preservation and challenging long‑term profitability sustainability.

Hesai Group Sponsored ADR 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). 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 Money

Hesai generates revenue primarily through the sale of its LiDAR sensors and related technology solutions to a diverse range of customers, including automotive manufacturers, robotics companies, and infrastructure developers. The company's revenue model is based on direct sales of hardware products, as well as potential recurring revenue from software solutions and maintenance services. Key revenue streams include large contracts with automotive OEMs (Original Equipment Manufacturers) for integration into self-driving vehicles, partnerships with technology firms for smart city projects, and collaborations with research institutions for advanced sensor applications. Additionally, Hesai's strategic alliances and partnerships boost its market presence and contribute to its earnings by expanding its customer base and enhancing product offerings.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.75B	2.08B	1.88B	1.20B	720.77M	415.51M
Gross Profit	1.14B	884.59M	661.38M	471.99M	381.80M	238.91M
EBITDA	556.81M	-118.64M	-385.93M	-247.15M	-217.63M	-82.60M
Net Income	429.67M	-102.38M	-475.97M	-300.76M	-244.83M	-107.22M
Balance Sheet
Total Assets	10.91B	5.99B	5.66B	3.84B	3.95B	1.31B
Cash, Cash Equivalents and Short-Term Investments	7.36B	3.20B	3.16B	1.86B	2.79B	902.69M
Total Debt	835.35M	739.26M	559.24M	63.59M	0.00	0.00
Total Liabilities	2.07B	2.06B	1.80B	997.66M	902.55M	174.93M
Stockholders Equity	8.84B	3.93B	3.86B	-3.15B	-2.49B	1.14B
Cash Flow
Free Cash Flow	0.00	-207.85M	-357.41M	-936.40M	-509.99M	-428.59M
Operating Cash Flow	0.00	63.50M	57.26M	-696.01M	-228.39M	-352.01M
Investing Cash Flow	0.00	955.88M	-1.06B	1.12B	-1.98B	179.03M
Financing Cash Flow	0.00	250.68M	1.59B	15.18M	2.40B	323.44M

Hesai Group Sponsored ADR Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSAI, the sentiment is Positive. The current price of 27.19 is above the 20-day moving average (MA) of 23.91, above the 50-day MA of 21.53, and above the 200-day MA of 21.49, indicating a bullish trend. The MACD of 1.65 indicates Negative momentum. The RSI at 66.09 is Neutral, neither overbought nor oversold. The STOCH value of 81.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HSAI.

Hesai Group Sponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLLY	64 Neutral	$507.35M	-19.84	-5.54%	―	-3.20%	-257.73%
HSAI	62 Neutral	$4.33B	58.79	6.61%	―	43.16%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LIDR	55 Neutral	$97.77M	-0.96	-75.54%	―	-19.11%	73.51%
AEVA	50 Neutral	$1.19B	―	-192.35%	―	89.90%	5.13%
INVZ	48 Neutral	$252.34M	―	-71.46%	―	46.09%	46.01%

Hesai Group Sponsored ADR Corporate Events

Hesai Group Reports December 2025 Movements in Share Capital and Equity Incentive Awards

Hesai Group reported its monthly share capital movements for the period ended December 31, 2025, confirming that its authorised share capital remained unchanged at US$100,000, divided into 50 million Class A and 950 million Class B ordinary shares (including 50 million unissued, undesignated shares that can be converted to Class B). During December 2025, the company increased its issued Class B share count by 1 million shares to 130,143,350, issuing these shares on December 15, 2025 in the form of ADSs to the depositary to satisfy future exercises or vesting of awards under its 2021 Plan; it also recorded option exercises, lapses of options and RSUs, and confirmed that all equity-related transactions were duly authorised and compliant with applicable listing and regulatory requirements, underscoring active use of equity incentives without diluting existing shareholders through treasury share movements.

The most recent analyst rating on (HSAI) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Hesai Group Sponsored ADR stock, see the HSAI Stock Forecast page.

Hesai Group Announces Independent Director Change and Committee Reassignments

On December 24, 2025, Hesai Group reported a board reshuffle, with independent director Dr. Jie Chen resigning from the board and its audit, compensation, and nominating and corporate governance committees, a move the company said was not related to any disagreements over its operations, policies, or practices. Effective the same day, the board appointed Dr. Hui Wang—an experienced independent director at Chinese listed technology companies and a long-time Peking University Law School academic—to fill those roles, a change expected to reinforce Hesai’s strategic direction and corporate governance framework under applicable Nasdaq rules, while signaling continuity and stability for investors and other stakeholders.

The most recent analyst rating on (HSAI) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Hesai Group Sponsored ADR stock, see the HSAI Stock Forecast page.

Hesai Group Reports Stable Share Movements for November 2025

On December 5, 2025, Hesai Group reported its monthly return of equity issuer on movements in securities for November 2025. The report highlighted that there were no changes in the number of authorized or registered shares for both Class A and Class B ordinary shares during the month. Additionally, the company executed 36,667 share options and granted 305,832 restricted stock units (RSUs) under its 2021 Plan. These movements reflect Hesai Group’s ongoing efforts to manage its equity structure and incentivize its workforce, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HSAI) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Hesai Group Sponsored ADR stock, see the HSAI Stock Forecast page.

Hesai Group Grants RSUs to Directors and Employees to Boost Growth

On November 12, 2025, Hesai Group announced the grant of 305,832 awards in the form of Restricted Stock Units (RSUs) to two directors and 109 employees under its 2021 Plan. This move aims to align the interests of the grantees with those of the company’s shareholders, incentivizing outstanding performance and long-term commitment to the company’s growth. The awards, which do not require a purchase price and have a vesting period of up to 48 months, are part of the company’s strategy to retain and motivate key personnel, thereby enhancing the company’s value and ensuring its competitive positioning in the market.

The most recent analyst rating on (HSAI) stock is a Buy with a $225.00 price target. To see the full list of analyst forecasts on Hesai Group Sponsored ADR stock, see the HSAI Stock Forecast page.

Hesai Group Reports Strong Q3 2025 Financial Results and Expands Market Leadership

Hesai Group reported strong financial results for the third quarter of 2025, with net revenues reaching RMB795.4 million, a 47.5% increase from the previous year. The company achieved a record net income of RMB256.2 million, driven by robust lidar shipments and growing adoption in both ADAS and robotics sectors. Hesai maintained its leadership in the long-range automotive lidar market, capturing a 46% market share in August. The company’s successful Hong Kong IPO further bolstered its financial position, raising US$614 million. Hesai’s strategic moves, including securing design wins with top ADAS customers and expanding its lidar supply agreements with global autonomous driving companies, position it well for future growth.

The most recent analyst rating on (HSAI) stock is a Buy with a $26.70 price target. To see the full list of analyst forecasts on Hesai Group Sponsored ADR stock, see the HSAI Stock Forecast page.

Hesai Group Reports Stable Share Movements for October 2025

On November 6, 2025, Hesai Group reported its monthly return of equity issuer on movements in securities for October 2025. The report highlighted that there were no changes in the number of issued shares or treasury shares for both Class A and Class B ordinary shares during the month. The company also noted that certain share options and restricted stock units (RSUs) under the 2021 Plan were exercised or lapsed, but these did not affect the total number of shares issued or in treasury. This stability in share movements suggests a steady operational phase for Hesai Group, potentially reassuring stakeholders about the company’s current market positioning.

The most recent analyst rating on (HSAI) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Hesai Group Sponsored ADR stock, see the HSAI Stock Forecast page.

Hesai Group Concludes Stabilization Period Post Hong Kong Listing

Hesai Group announced the end of its stabilization period following the listing of its Class B Ordinary Shares on the Main Board of the Stock Exchange of Hong Kong Limited on September 16, 2025. During this period, the company saw an increase of 2,932,500 in its issued shares due to the full exercise of the Over-allotment Option. This move reflects the company’s strategic efforts to strengthen its capital base and enhance its market presence, which could potentially impact its operations and investor confidence positively.

The most recent analyst rating on (HSAI) stock is a Hold with a $21.50 price target. To see the full list of analyst forecasts on Hesai Group Sponsored ADR stock, see the HSAI Stock Forecast page.