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Hesai Group Class B
(2525)
Select Model
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Rating:69Neutral
Price Target:
HK$19.50
▲(21.72% Upside)
Action:Reiterated
Date:08/18/26
The score is driven primarily by improved financial performance (profitability rebound and a low-leverage balance sheet) but held back by weak cash-flow conversion and negative free cash flow. Earnings-call updates are supportive due to raised SGI guidance, strong shipment scaling, and stable ~40% gross margin, while technicals are moderately positive but not yet strong on a long-term trend basis. Valuation remains a constraint given the high P/E and lack of dividend yield.
Positive Factors
Sustained Revenue Growth
Sustained growth across multiple quarters indicates expanding customer adoption and production scale. Continued shipment increases and raised revenue guidance support a durable growth trajectory beyond a single reporting period.
Negative Factors
Weak Cash Conversion
Persistent negative free cash flow means reported profits are not yet translating into internally generated cash. Continued investment and working-capital needs may require balance-sheet funding, increasing execution and liquidity risk during expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Sustained growth across multiple quarters indicates expanding customer adoption and production scale. Continued shipment increases and raised revenue guidance support a durable growth trajectory beyond a single reporting period.
Read all positive factors
Hesai Group Class B (2525) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$22.87B
Dividend YieldN/A
Average Volume (3M)10.33M
Price to Earnings (P/E)37.2
Beta (1Y)1.97
Revenue Growth38.53%
EPS Growth341.50%
CountryHK
Employees1,118
SectorGeneral
Sector StrengthN/A
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.43
Shares Outstanding1,041,146,900
10 Day Avg. Volume15,880,096
30 Day Avg. Volume10,327,281
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)2.48
Price to Sales (P/S)7.34
P/FCF Ratio-98.74
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$27.33Price Target Upside70.63% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)0.47
Revenue Forecast (FY)HK$4.99B
Hesai Group Class B Business Overview & Revenue Model
Company Description
Hesai Group, including its affiliated entities, specializes in the creation, manufacturing, and global distribution of three-dimensional Light Detection and Ranging (LiDAR) technologies. Its market reach extends across Mainland China, Europe, Nort...
Hesai Group Class B Earnings Call Summary
Earnings Call Date:Aug 18, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Positive
The call emphasized strong, broad-based growth: revenue +22% YoY, healthy ~40% gross margin, significant shipment scaling (lidar shipments +~80% YoY; robotics lidar nearly tripled YoY), multiple design wins, SOP readiness for Picasso, and SGI moving from R&D to early commercialization with raised guidance. Near-term headwinds include SGI operating losses as the company invests, connected‑party concentration with Sharpa, competitive pricing pressure, higher R&D spend and regulatory uncertainty. On balance, operational scale, profitability, design wins, and upgraded SGI outlook outweigh the risks, but execution and regulatory pressures merit monitoring.Positive Updates
Revenue Growth and Profitability
Total net revenues reached RMB 861 million (USD 127 million) in Q2 2026, up ~22% year-over-year; GAAP net income was RMB 71 million (USD 10 million), up 60% YoY; non-GAAP net income RMB 101 million (USD 15 million). This marks nine consecutive quarters of YoY revenue growth.
Negative Updates
SGI Operating Loss and Early-Stage Investments
SGI recorded an operating loss of RMB 64 million in Q2 as the company invests heavily in product development, commercialization and capacity expansion; SGI revenues remain small in absolute terms (RMB 45 million in Q2) despite rapid early traction.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth and Profitability
Total net revenues reached RMB 861 million (USD 127 million) in Q2 2026, up ~22% year-over-year; GAAP net income was RMB 71 million (USD 10 million), up 60% YoY; non-GAAP net income RMB 101 million (USD 15 million). This marks nine consecutive quarters of YoY revenue growth.
Read all positive updates
Company Guidance
Management raised full‑year 2026 SGI revenue guidance from RMB 100 million to RMB 200–300 million (Q2 SGI revenue RMB 45m), and reiterated group-level targets including Q3 revenue of RMB 1.1–1.15 billion with lidar shipments of ~800k–850k and SGI contributing high‑8‑digit revenue in Q3; full‑year lidar shipments are reiterated at 3.0–3.5 million units (about 1.1M shipped in 1H), Q2 lidar shipments were >628k (ADAS >485k, robotics >142k), robotics lidar is expected to exceed 500k for the year and to grow multiple‑fold, SGI is expected to reach ≈USD 100m (~RMB 700m) and breakeven in 2027, Kosmo is on track to contribute revenues in Q3 with a low‑8‑digit initial contribution this year, actuation modules had cumulative shipments >10,000 by end‑Q2 and are ramping toward ~10,000 modules/month with 6‑digit volumes expected in 2027, and the company maintained a ~40% gross margin with Q2 total revenue RMB 861m, GAAP net income RMB 71m and non‑GAAP net income RMB 101m.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 | 3.33B | 3.03B | 2.08B | 1.88B | 1.20B | 722.00M |
| Gross Profit | 1.36B | 1.27B | 884.59M | 661.38M | 471.99M | 468.22M |
| EBITDA | 469.27M | 609.50M | 43.40M | -385.93M | -247.15M | -260.07M |
| Net Income | 497.91M | 435.88M | -102.38M | -475.97M | -300.76M | -240.83M |
Balance Sheet | ||||||
| Total Assets | 11.00B | 11.26B | 5.99B | 5.66B | 3.84B | 4.85B |
| Cash, Cash Equivalents and Short-Term Investments | 6.66B | 4.76B | 3.20B | 3.14B | 1.86B | 3.44B |
| Total Debt | 798.07M | 999.48M | 739.26M | 559.24M | 63.59M | 0.00 |
| Total Liabilities | 2.05B | 2.30B | 2.06B | 1.80B | 997.66M | 7.90B |
| Stockholders Equity | 8.95B | 8.96B | 3.93B | 3.86B | -3.15B | -3.05B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -225.21M | -207.85M | -357.41M | -936.40M | -550.00M |
| Operating Cash Flow | 0.00 | 116.99M | 63.50M | 57.26M | -696.01M | -280.08M |
| Investing Cash Flow | 0.00 | -5.55B | 955.88M | -1.06B | 1.12B | -1.95B |
| Financing Cash Flow | 0.00 | 4.35B | 250.68M | 1.59B | 15.18M | 2.36B |
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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | HK$4.23B | 7.57 | 26.57% | 11.43% | 22.02% | -10.82% | |
72 Outperform | HK$12.39B | 12.66 | 5.82% | 2.89% | 5.98% | 13.92% | |
70 Outperform | HK$29.12B | 8.78 | 12.03% | 6.15% | 14.21% | 14.88% | |
69 Neutral | HK$22.87B | 37.23 | 5.59% | ― | 38.53% | 341.50% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | HK$17.60B | 11.36 | 7.18% | 3.20% | 0.22% | -23.29% | |
48 Neutral | HK$1.74B | -40.46 | -6.42% | ― | -2.96% | -198.48% |
* General Sector Average
HK:2525
Hesai Group Class B
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Hesai Group Class B Corporate Events
Hesai Group Posts Unaudited Q2 2026 Results and Warns Investors on Lidar Market Risks
Aug 18, 2026
Hesai Group has released its unaudited condensed consolidated financial results for the quarter ended June 30, 2026, prepared under U.S. GAAP for compliance with U.S. and Hong Kong securities regulations. The company cautioned shareholders and pot...
Hesai Group Doubles Lidar Shipments and Triples Net Income in First-Half 2026
Aug 18, 2026
Hesai Group reported strong operational momentum in the first half of 2026, driven by surging demand for its lidar products across automotive and robotics markets. ADAS lidar shipments nearly doubled to 839,345 units year-on-year, while robotics l...
Hesai Group Raises Sharpa Supply Cap, Triggers Investor Approval Process
Jul 31, 2026
Hesai Group has revised its supply arrangement with Sharpa, a connected company controlled by its co-founders, after a surge in demand for LiDAR products, robotic actuators, and related integration services. The new framework agreement, signed on ...
Hesai Group Calls EGM to Approve Revised Supply Deal With Sharpa
Jul 31, 2026
Hesai Group has called an extraordinary general meeting for August 28, 2026 in Suzhou, China, asking independent shareholders to approve, confirm and ratify a revised supply of products framework agreement with Sharpa and a revised annual cap on t...
Hesai Group Sets August Board Meeting and Global Earnings Call for Q2 2026
Jul 27, 2026
Hesai Group has scheduled a board meeting for August 18, 2026 to review and approve its quarterly results for the three months ended June 30, 2026 and unaudited consolidated interim results for the first half of 2026. The approval and publication ...
Hesai Group Updates U.S. ADS Deposit Agreement With SEC Filing
Jul 10, 2026
Hesai Group has filed a post-effective amendment to its U.S. Form F-6 registration statement, updating the deposit agreement that governs its American Depositary Shares listed in the United States. The move reflects ongoing adjustments to the lega...
Hesai Group Implements Share Subdivision and Adjusts Equity Incentive Awards
Jul 9, 2026
Hesai Group will implement a share subdivision of its Class B ordinary shares effective July 10, 2026, with trading in the subdivided shares on the Hong Kong Stock Exchange starting the same day. The board lot size will change from 20 existing Cla...
Hesai Group Shareholders Approve All Resolutions at 2026 AGM
Jun 26, 2026
Hesai Group reported that all resolutions at its annual general meeting on June 26, 2026, were approved by shareholders, confirming broad support for the company’s governance and financial reporting. Shareholders adopted the audited consolid...
Hesai Grants Over 737,000 RSUs to 302 Employees Under 2021 Equity Plan
Jun 12, 2026
Hesai Group has granted 737,054 restricted share units to 302 eligible employees under its 2021 equity incentive plan, with each RSU corresponding to a Class B ordinary share. The awards, granted at no purchase price, reflect the company’s o...
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...
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.