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Hesai Group Sponsored ADR
(NASDAQ:HSAI)
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Rating:57Neutral
Price Target:
$12.50
▼(-31.69% Downside)
Action:Reiterated
Date:10/23/26
The score is led by improving fundamentals and a stronger earnings narrative (raised guidance, solid margins, profitability), supported by a relatively strong balance sheet. Offsetting this are weak technicals (clear downtrend with negative momentum) and ongoing free-cash-flow deficits that increase execution and funding risk.
Positive Factors
Revenue growth and profitability
Sustained revenue growth alongside a 40% gross margin and fifth consecutive quarter of GAAP profitability indicates improving operating scale. If maintained, this combination can strengthen internal funding capacity, support continued product investment, and improve the durability of earnings over the next several quarters.
Negative Factors
Negative free cash flow
Persistent negative free cash flow shows that operating cash generation has not yet fully funded investment and working-capital requirements. Continued cash consumption could limit financial flexibility, increase dependence on external funding, and make the company more sensitive to delays in production ramps or customer payments.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and profitability
Sustained revenue growth alongside a 40% gross margin and fifth consecutive quarter of GAAP profitability indicates improving operating scale. If maintained, this combination can strengthen internal funding capacity, support continued product investment, and improve the durability of earnings over the next several quarters.
Read all positive factors
Hesai Group Sponsored ADR (HSAI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.01B
Dividend YieldN/A
Average Volume (3M)1.47M
Price to Earnings (P/E)25.7
Beta (1Y)1.91
Revenue Growth38.17%
EPS Growth339.11%
CountryUS
Employees1,249
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)3.40
Shares Outstanding130,643,360
10 Day Avg. Volume2,487,340
30 Day Avg. Volume1,468,018
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 Cap1.05
Enterprise Value/Revenue0.63
Enterprise Value/Gross Profit1.55
Enterprise Value/Ebitda3.86
Forecast
1Y Price Target
$28.63Price Target Upside56.47% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)2.92
Revenue Forecast (FY)$4.23B
Hesai Group Sponsored ADR Business Overview & Revenue Model
Company Description
Hesai Group, along with its various subsidiaries, focuses on the creation, production, and marketing of three-dimensional light detection and ranging (LiDAR) technologies. These sophisticated LiDAR solutions are utilized in a diverse array of appl...
How the Company Makes Money
Hesai makes money primarily by selling lidar sensors (hardware units) to customers, generating product revenue that scales with the number of sensors shipped and the pricing of each model. A major revenue stream is automotive lidar supplied to veh...
Hesai Group Sponsored ADR Earnings Call Summary
Earnings Call Date:Aug 18, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operational and financial picture for the core lidar business (double-digit revenue growth, healthy 40% gross margin, growing profitability, and sustained market leadership with multiple design wins). At the same time management highlighted successful early commercial traction for strategic growth initiatives (actuation modules and Kosmo) and raised SGI guidance, while acknowledging that SGI is investment-heavy, recorded an operating loss in the quarter, and carries customer concentration and execution risks. Competitive and regulatory uncertainties were noted but not presented as immediate material constraints. On balance, the positive revenue, profitability, market-share momentum and raised guidance outweigh the early-stage SGI risks.Positive Updates
Revenue Growth and Scale
Total net revenues of RMB 861 million (USD 127 million) in Q2 2026, up approximately 22% year-over-year; marked the ninth consecutive quarter of year-over-year revenue growth.
Negative Updates
SGI Operating Loss and Early-Stage Risk
SGI recorded an operating loss of RMB 64 million in Q2 2026 and remains in an investment-heavy commercialization phase; SGI revenues were small (RMB 45 million) relative to investments (R&D expenses of RMB 231 million for the quarter).
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth and Scale
Total net revenues of RMB 861 million (USD 127 million) in Q2 2026, up approximately 22% year-over-year; marked the ninth consecutive quarter of year-over-year revenue growth.
Read all positive updates
Company Guidance
The company raised 2026 SGI revenue guidance to RMB 200–300 million (from RMB 100 million) and reiterated full‑year lidar shipment guidance of 3.0–3.5 million units; for Q3 it guided total revenue of RMB 1.10–1.15 billion with lidar shipments of ~800k–850k units and SGI contributing “high‑8‑digits,” and said Q3 may be the quarter where non‑ADAS lidar revenue approaches or exceeds half of total revenue. Key near‑term production and commercial metrics include ramping actuation capacity toward ~10,000 modules/month (cumulative modules >10,000 at end‑Q2) and an expectation of 6‑digit module volumes in 2027, SGI revenue of roughly USD 100 million (~RMB 700 million) and breakeven in 2027, and a full‑year robotics lidar outlook of >500,000 units; Q2 results that underpin guidance were RMB 861 million total revenue (+~22% YoY), gross margin ~40%, GAAP net income RMB 71 million, non‑GAAP net income RMB 101 million, lidar revenue RMB 816 million, and total Q2 lidar shipments >628,000 (ADAS >485,000; robotics >142,000), with ~1.1 million units shipped in H1 and historical seasonality (≈2/3 of volume in H2) supporting the guidance.Hesai Group Sponsored ADR Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
78
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.34B | 3.03B | 2.08B | 1.88B | 1.20B | 720.77M |
| Gross Profit | 1.36B | 1.27B | 884.59M | 661.38M | 471.99M | 381.80M |
| EBITDA | 546.38M | 609.50M | 43.39M | -385.93M | -247.15M | -217.63M |
| Net Income | 498.21M | 435.88M | -102.38M | -475.97M | -300.76M | -244.83M |
Balance Sheet | ||||||
| Total Assets | 11.00B | 11.27B | 5.99B | 5.66B | 3.84B | 3.95B |
| Cash, Cash Equivalents and Short-Term Investments | 6.65B | 4.76B | 3.20B | 3.16B | 1.86B | 2.79B |
| Total Debt | 705.68M | 963.33M | 739.26M | 559.24M | 63.59M | 0.00 |
| Total Liabilities | 2.05B | 2.30B | 2.06B | 1.80B | 997.66M | 902.55M |
| Stockholders Equity | 8.95B | 8.96B | 3.93B | 3.86B | -3.15B | -2.49B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -187.14M | -207.85M | -357.41M | -936.40M | -509.99M |
| Operating Cash Flow | 0.00 | 113.80M | 63.50M | 57.26M | -696.01M | -228.39M |
| Investing Cash Flow | 0.00 | -5.40B | 955.88M | -1.06B | 1.12B | -1.98B |
| Financing Cash Flow | 0.00 | 4.23B | 250.68M | 1.59B | 15.18M | 2.40B |
Hesai Group Sponsored ADR Technical Analysis
Negative
18.30
Price Trends
16.31
Negative
16.66
Negative
20.19
Negative
Market Momentum
-1.03
Positive
39.60
Neutral
22.74
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 18.3 is above the 20-day moving average (MA) of 14.64, above the 50-day MA of 16.31, and below the 200-day MA of 20.19, indicating a bearish trend. The MACD of -1.03 indicates Positive momentum. The RSI at 39.60 is Neutral, neither overbought nor oversold. The STOCH value of 22.74 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 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% | |
57 Neutral | $2.01B | 25.72 | 5.59% | ― | 38.17% | 339.11% | |
55 Neutral | $5.56B | -1.31 | -40.43% | ― | 5.00% | -36.49% | |
53 Neutral | $8.86B | 40.66 | 2.41% | 0.97% | -5.40% | -75.68% | |
48 Neutral | $303.23M | -16.01 | 7.21% | ― | 10.74% | 85.17% | |
43 Neutral | $66.72M | -0.60 | -118.08% | ― | 41.09% | 9.05% | |
40 Underperform | $4.08M | -0.12 | -187.46% | ― | ― | ― |
* Consumer Cyclical Sector Average
HSAI
Hesai Group Sponsored ADR
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Hesai Group Sponsored ADR Corporate Events
Hesai Group Files September 2026 Form 6-K and Publishes 2026 Interim Report
Sep 17, 2026
Hesai Group, a foreign private issuer with shares traded in Hong Kong, has filed a Form 6-K with the U.S. Securities and Exchange Commission for September 2026, underscoring its obligations under both U.S. and Hong Kong listing regimes. The filing...
Hesai Group Reports Stable Share Capital and Equity Plan Activity for August 2026
Sep 8, 2026
Hesai Group reported that its authorised share capital remained unchanged for the month ended 31 August 2026, with 400 million Class A and 7.6 billion Class B ordinary shares and total authorised capital of USD 100,000. The company confirmed that ...
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.