20260819-招银国际-LiDAR_business_as_stable_profit_generator_SGI_growth_visibility_improves_2页_677kb

Hesai Group (HSAI US) 2Q26 Financial Summary

Core Content Overview

Hesai Group (HSAI US) released its 2Q26 financial results, showing strong revenue growth and improved performance in its Strategic Growth Initiatives (SGI) segment. The company's financial results and future outlook indicate a positive trajectory, with a BUY rating and a target price of US$29.30.

Key Financial Performance

• Total Revenue: RMB860.8mn, up 22% YoY, matching expectations and Bloomberg consensus.
• Non-GAAP Net Profit: RMB101mn, exceeding forecasts and consensus by RMB98mn and RMB84mn, respectively.
• Investment Income: RMB36.6mn contributed to the profit increase.
• LiDAR Operating Profit: RMB66.2mn in 2Q26, up from RMB22.9mn in 2Q25.
• SGI Revenue: RMB45mn in 2Q26, with a significant contribution from robotic actuation modules.
• LiDAR Shipments: 628k units in 2Q26, up 78% YoY, exceeding consensus.
  • ADAS LiDAR: 486k units (+60% YoY)
  • Robotics LiDAR: 142k units (+193% YoY)
• Gross Margin (GPM): 40.1% in 2Q26, surpassing the consensus of 39.4%, driven by higher-margin SGI products and stable LiDAR margins.
• LiDAR Operating Margin: 8.1% in 2Q26, up from ~3% in 2Q25.

SGI Growth Outlook

• Robotic Actuation Module Production: Fully operational, with over 10k units delivered by the end of 2Q26.
• SGI Revenue Guidance: Management raised 2026E SGI revenue guidance to RMB200mn-300mn (from RMB100mn previously).
• 2027E Revenue & Breakeven: Guidance of US$100mn (from RMB500mn previously) in revenue and breakeven.
• Kosmo Revenue Contribution: Expected to start contributing revenue from 3Q26, with low-eight-digit RMB revenue in 2026E.
• Business Model Evolution: Part of Kosmo's business model is expected to transition to recurring ARR through software and platform services.

3Q26 Revenue Guidance

• Revenue Range: RMB1.1bn-1.15bn, in line with the Bloomberg consensus of RMB1.14bn.
• Growth Rate: Implies 38-45% YoY growth, driven by higher LiDAR shipment volumes and incremental SGI revenue.

Valuation and Catalysts

• Target Price: US$29.30, based on 7.5x 2026E P/S.
• Catalysts:
  1. Faster-than-expected adoption of L3 vehicles, potentially increasing dollar content per car.
  2. Ramp-up in SGI revenue.
• Risks:
  1. Intensifying industry competition.
  2. Slower-than-expected SGI revenue growth.

Analyst Information

• Analysts:
  • Saiyi HE, CFA
  • Ye TAO, CFA
  • Wentao LU, CFA
  • Shuyin GUO
• Contact Details:
  • Saiyi HE: (852) 3916 1739 / hesaiyi@cmbi.com.hk
  • Ye TAO: (852) 3850 5226 / franktao@cmbi.com.hk
  • Wentao LU: luwentao@cmbi.com.hk
  • Shuyin GUO: (852) 3916 3716 / guoshuyin@cmbi.com.hk

CMBIGM Ratings

• BUY: Stock with potential return of over 15% over next 12 months.
• HOLD: Stock with potential return of +15% to -10% over next 12 months.
• SELL: Stock with potential loss of over 10% over next 12 months.
• NOT RATED: Stock not rated by CMBIGM.
• OUTPERFORM: Industry expected to outperform the relevant broad market benchmark over next 12 months.
• MARKET-PERFORM: Industry expected to perform in-line with the relevant broad market benchmark over next 12 months.
• UNDERPERFORM: Industry expected to underperform the relevant broad market benchmark over next 12 months.

Important Disclosures

• Risks: Trading in securities involves risk, and past performance does not guarantee future results.
• Disclaimer: This report is not investment advice and should not be relied upon for making investment decisions.
• Distribution: Intended for CMBIGM clients and affiliates only. Not for public distribution.
• Conflicts of Interest: CMBIGM may have investment banking relationships with the companies mentioned, which could affect objectivity.

Regulatory Information

• Hong Kong: CMBIGM is a subsidiary of China Merchants Bank.
• United Kingdom: Report is provided only to persons within Article 19(5) of the Financial Services and Markets Act 2000 or to High Net Worth Companies, Unincorporated Associations, etc.
• United States: Report is intended solely for "major US institutional investors" and not for public distribution.
• Singapore: Distributed by CMBISG, an Exempt Financial Adviser regulated by the Monetary Authority of Singapore.