Hesai Group Sponsored ADR (HSAI)
NASDAQ:HSAI
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Hesai Group Sponsored ADR
(NASDAQ:HSAI)
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Rating:58Neutral
Price Target:
$21.00
▼(-9.68% Downside)
Action:Reiterated
Date:05/20/26
The score is driven mainly by improving fundamentals and strong earnings-call guidance (ramping shipments, healthy gross margin, and continued GAAP profitability), tempered by negative free cash flow and still-thin operating profitability. Technicals remain weak with the stock trading below key moving averages, and valuation is demanding at a ~40 P/E, increasing execution risk.
Positive Factors
Market leadership & share gains
Sustained #1 share in long‑range ADAS and ~55% China share reflect durable competitive advantage: stronger OEM relationships, repeat design wins and higher switching costs. Dominant share supports pricing power, supply chain leverage and faster adoption across vehicle programs over months to years.
Negative Factors
Negative free cash flow
Persistent negative free cash flow despite operating cash improvement signals continued capital intensity and working capital needs. Over 2–6 months this elevates funding risk, may require external financing or draw on balance sheet flexibility, and constrains optionality for further investments.
Read all positive and negative factors
Positive Factors
Negative Factors
Market leadership & share gains
Sustained #1 share in long‑range ADAS and ~55% China share reflect durable competitive advantage: stronger OEM relationships, repeat design wins and higher switching costs. Dominant share supports pricing power, supply chain leverage and faster adoption across vehicle programs over months to years.
Read all positive factors
Hesai Group Sponsored ADR (HSAI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.14B
Dividend YieldN/A
Average Volume (3M)1.83M
Price to Earnings (P/E)42.3
Beta (1Y)1.80
Revenue Growth44.14%
EPS GrowthN/A
CountryUS
Employees1,142
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)3.03
Shares Outstanding130,143,360
10 Day Avg. Volume2,088,532
30 Day Avg. Volume1,826,050
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)2.43
Price to Sales (P/S)7.20
P/FCF Ratio-116.46
Enterprise Value/Market Cap5.51
Enterprise Value/Revenue5.70
Enterprise Value/Gross Profit13.65
Enterprise Value/Ebitda32.19
Forecast
1Y Price Target
$30.18Price Target Upside29.81% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)3.66
Revenue Forecast (FY)$4.36B
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...
How the Company Makes Money
Hesai primarily makes money by selling lidar sensors and related products to customers that integrate these sensors into end systems. The main revenue stream is product revenue from shipments of lidar units, with pricing tied to volume and product...
Hesai Group Sponsored ADR 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 conveyed strong operational and commercial momentum: accelerating shipment scale (guidance to 3.0–3.5M units), robust Q1 revenue growth (+30% YoY to RMB 681M), healthy gross margins (>39%), expanding market share (43% global, ~55% China), major OEM design wins including Mercedes‑Benz, and product innovation (Picasso, ETX, Kosmo) that position the company for long‑term growth. Near term, management is deliberately investing in SGI (Kosmo and actuators), which produced an operating loss (RMB 51M) and pushed operating expenses +9% YoY; blended ASPs are declining due to mix shift into ADAS volumes. Overall, the positives — scale, profitability at the core lidar business, dominant market share, backlog and high‑profile OEM partnerships — materially outweigh the early‑stage SGI losses and ASP mix headwinds.Positive Updates
Major OEM Partnership — Mercedes‑Benz Level 3 Supply
Confirmed strategic lidar partner and supplier for Mercedes‑Benz Level 3 models covering Europe and China; production supported by new Galileo manufacturing center in Thailand, accelerating global OEM penetration.
Negative Updates
SGI Segment Operating Loss
Strategic Growth Initiatives (SGI) recorded an operating loss of RMB 51 million in Q1 as the company makes deliberate early investments; SGI commercialization is at an early stage and currently drag on consolidated operating profit.
Read all updates
Q1-2026 Updates
Positive
Negative
Major OEM Partnership — Mercedes‑Benz Level 3 Supply
Confirmed strategic lidar partner and supplier for Mercedes‑Benz Level 3 models covering Europe and China; production supported by new Galileo manufacturing center in Thailand, accelerating global OEM penetration.
Read all positive updates
Company Guidance
Management guided Q2 revenue of RMB 850–900 million (USD 123–130M) with roughly 650,000 lidar shipments (implying ~20–27% YoY revenue growth), building on Q1’s RMB 681M (USD 99M) and 471,000+ shipments; they reaffirmed full‑year lidar shipment guidance of 3.0–3.5 million units (after delivering 1.6M in 2025 and with backlog >6M units) and said SGI will begin contributing in Q2 with ~RMB 100M revenue in 2026 (targeting ~RMB 500M in 2027 and “8‑digit” initial revenues for Kosmo this year), while Q1 metrics showed gross margin >39%, lidar operating profit of RMB 42M, SGI operating loss of RMB 51M, GAAP net income RMB 18M (USD 2.7M) and non‑GAAP net income RMB 48M (USD 6.9M); management expects quarterly momentum to strengthen, SGI to be accretive to group gross margin over time, and to maintain GAAP profitability.Hesai Group Sponsored ADR Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
78
Positive
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.03B | 2.08B | 1.88B | 1.20B | 720.77M |
| Gross Profit | 1.27B | 884.59M | 661.38M | 471.99M | 381.80M |
| EBITDA | 609.50M | -118.64M | -385.93M | -247.15M | -217.63M |
| Net Income | 435.88M | -102.38M | -475.97M | -300.76M | -244.83M |
Balance Sheet | |||||
| Total Assets | 11.27B | 5.99B | 5.66B | 3.84B | 3.95B |
| Cash, Cash Equivalents and Short-Term Investments | 4.76B | 3.20B | 3.16B | 1.86B | 2.79B |
| Total Debt | 963.33M | 739.26M | 559.24M | 63.59M | 0.00 |
| Total Liabilities | 2.30B | 2.06B | 1.80B | 997.66M | 902.55M |
| Stockholders Equity | 8.96B | 3.93B | 3.86B | -3.15B | -2.49B |
Cash Flow | |||||
| Free Cash Flow | -187.14M | -207.85M | -357.41M | -936.40M | -509.99M |
| Operating Cash Flow | 113.80M | 63.50M | 57.26M | -696.01M | -228.39M |
| Investing Cash Flow | -5.40B | 955.88M | -1.06B | 1.12B | -1.98B |
| Financing Cash Flow | 4.23B | 250.68M | 1.59B | 15.18M | 2.40B |
Hesai Group Sponsored ADR Technical Analysis
Negative
23.25
Price Trends
21.59
Negative
23.84
Negative
23.76
Negative
Market Momentum
-0.62
Positive
37.39
Neutral
13.26
Positive
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 23.25 is above the 20-day moving average (MA) of 21.44, above the 50-day MA of 21.59, and below the 200-day MA of 23.76, indicating a bearish trend. The MACD of -0.62 indicates Positive momentum. The RSI at 37.39 is Neutral, neither overbought nor oversold. The STOCH value of 13.26 is Positive, 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 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $3.14B | 42.34 | 6.08% | ― | 44.14% | ― | |
52 Neutral | $349.07M | 13.85 | 5.30% | ― | 1.87% | ― | |
51 Neutral | $1.63B | -12.16 | 691.75% | ― | 103.11% | 7.34% | |
51 Neutral | $157.07M | -2.02 | -101.64% | ― | 29.57% | 13.83% | |
51 Neutral | $94.48M | -2.64 | -56.22% | ― | 9.76% | 68.22% |
* Consumer Cyclical Sector Average
HSAI
Hesai Group Sponsored ADR
18.90
0.04
0.21%
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181.69%
Hesai Group Sponsored ADR Corporate Events
Hesai Group Sets May 19 Board Meeting and Q1 2026 Earnings Call
Apr 27, 2026
Hesai Group has scheduled a board meeting for May 19, 2026, in Beijing/Hong Kong to review and approve its unaudited financial results for the three months ended March 31, 2026. The move signals the next formal disclosure of the lidar maker’...
Hesai Group Files 2025 Annual and ESG Reports with U.S. SEC
Apr 24, 2026
Hesai Group, a Cayman Islands–incorporated company based in Shanghai and listed in Hong Kong, operates as a foreign private issuer in U.S. markets and maintains compliance with SEC reporting requirements. Its governance structure includes we...
Hesai Group Reports Stable Share Capital and Non‑Dilutive Equity Incentive Activity for February 2026
Mar 5, 2026
Hesai Group filed its March 2026 Form 6-K on March 5, 2026, providing a monthly return on movements in its securities for the month ended February 28, 2026. The filing shows that authorized share capital remained at US$100,000, with 50 million Cla...
Hesai Group Sets March 24 Board Meeting and Earnings Call for Q4 and Full-Year 2025 Results
Mar 5, 2026
Hesai Group said its board of directors will meet on March 24, 2026, in Hong Kong to review and approve the company’s quarterly results for the three months ended December 31, 2025, as well as its annual results for the full year 2025. The 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.