Hesai Group (HSAI)

Individual Stock Analysis Report | Industry: LiDAR and 3D Environmental Perception Solutions | Report Date: September 13, 2026 | Data as of September 11, 2026 U.S. market close; September 13, 2026 is a Sunday, and the next trading day has not yet opened. HSAI is the ADS of Hesai Group trading on the NASDAQ Global Select Market; 1 ADS represents 1 Class B ordinary share.

This report is automatically compiled and generated by AI based on public information, for reference only, and does not constitute investment advice.

1. Core Summary

Hesai Group (NASDAQ: HSAI) has turned from a net loss of RMB 102.4 million in 2024 to a GAAP net profit of RMB 435.9 million (approximately USD 62.3 million) in 2025, with 2025 net revenue of RMB 3.0276 billion (approximately USD 432.9 million), and LiDAR shipments reaching 1,620,406 units, up 222.9% year-over-year. As of the second quarter of 2026, the company achieved GAAP profitability for the fifth consecutive quarter, with quarterly revenue of RMB 860.8 million (approximately USD 126.9 million), up 21.9% year-over-year, and GAAP net profit of RMB 70.6 million (approximately USD 10.4 million), up 60.0% year-over-year. However, gross margin in the second quarter of 2026 declined from 42.5% in the same period last year to 40.1%, indicating that scale growth is still accompanied by declining average selling prices and margin pressure.

The company's core growth comes from ADAS and robotics LiDAR volume ramp-up. First-half 2026 revenue was RMB 1.5414 billion (approximately USD 227.2 million), up 25.1% year-over-year; ADAS and robotics LiDAR shipments grew 87% and 165% year-over-year, respectively. The company expects third-quarter 2026 revenue of RMB 1.100 billion to RMB 1.150 billion (approximately USD 162 million to USD 169 million), up approximately 38% to 45% year-over-year, and plans to expand robotics, embodied intelligence, and related manufacturing services businesses. The company also holds cash reserves of RMB 7.0506 billion (approximately USD 1.039 billion) against liabilities of RMB 2.0535 billion (approximately USD 302.6 million), placing it in a clearly net cash position financially.

Earnings quality and valuation still need to be observed in conjunction with operating metrics. In 2025, materials and component costs accounted for 41.3% of revenue, and key components such as automotive-grade chips, lasers, and receivers may face supply and price fluctuations; LiDAR average selling price declined from approximately USD 530/unit in 2024 to approximately USD 260/unit in 2025. Net accounts receivable rose to RMB 1.2622 billion (approximately USD 180.5 million) at the end of 2025, and the combined turnover days for accounts receivable, contract assets, and notes receivable rose to 137 days; extended customer credit terms are tying up cash flow. As of September 11, 2026, the stock price was USD 17.31, with a TTM P/E of approximately 36.86x and a Forward P/E of approximately 23.55x; market valuation already incorporates high expectations for continued rapid growth in future revenue and profit.

2. Company Overview

2.1 Basic Information

2.2 Main Business and Product Layout

• ADAS automotive LiDAR: AT series forward long-range LiDAR, ET series L3/L4 long-range LiDAR, and FT series blind-spot detection LiDAR
• Autonomous driving mobility and Robotaxi: Pandar series and OT series, targeting L4 autonomous driving, Robotaxi, industrial automation, and port logistics applications
• Robotics and industrial automation: XT, JT, and certain Pandar and OT products, applied to delivery robots, warehouse logistics, autonomous mobile robots, service robots, cleaning robots, lawn-mowing robots, industrial vehicles, agricultural machinery, and smart factories
• Gas detection and other sensors: methane leak detection gas sensors and oxygen sensors for high-end medical ventilators; 2025 gas detection product revenue was approximately RMB 3.2 million
• Engineering design, development, validation services, and other services

2.3 Position in the Industry Chain Upstream and Downstream, and Cost-Profit Structure

Hesai is positioned in the midstream of the "optoelectronic components/chips—LiDAR system integration—automotive and robotics perception systems" industry chain. Through in-house ASIC development, LiDAR system design, software algorithms, automated manufacturing, production testing, and automotive-grade certification, the company transforms upstream optical, electrical, mechanical, and semiconductor components into automotive-grade and robotics-grade 3D environmental perception products.

• Main procurement items include mechanical parts, fasteners, packaging materials and consumables, lasers, receivers, automotive-grade chips, electronic materials, and other optical components.
• In 2025, materials and component costs were RMB 1.2491 billion (approximately USD 178.6 million), accounting for 41.3% of net revenue; total operating costs were RMB 1.7625 billion (approximately USD 252.0 million), accounting for 58.2% of net revenue. Materials and key components are the primary source of cost pressure.
• From 2023 to 2025, there was no single supplier accounting for more than 10% of procurement; overall supplier concentration is not high; however, the research notes do not disclose a complete supplier list or more granular supplier shares.
• Ordinary mechanical parts, packaging components, and some electronic components typically have multiple supply sources in China and overseas, giving the company some supplier selection flexibility.
• Key components such as automotive-grade chips, lasers, and receivers may face supply tightness, price fluctuations, and longer lead times; the company has relatively limited bargaining power over these components and is overall closer to a price taker for certain key component costs.
• The company partially offsets upstream cost pressure through in-house ASICs, automated manufacturing, and scale production. As of the end of 2025, it had launched four generations of in-house ASICs, 16 in-house chips obtained AEC-Q automotive-grade certification, and cumulative deliveries reached 185 million units.
• The company typically maintains approximately two weeks to one month of internal safety stock and approximately one month of external safety stock depending on component type; specific inventory amounts and supplier concentration by category were not disclosed in the research notes.
• Downstream customers include Chinese and overseas automotive OEMs, automotive Tier-1 suppliers, Robotaxi and autonomous driving operators, robotics companies, and customers in warehouse logistics, ports, industrial automation, agriculture, service robotics, and smart infrastructure.
• The company's customers cover more than 40 countries, and it has offices in Shanghai, Palo Alto in the United States, and Stuttgart in Germany.
• Revenue concentration of the top five customers was: 67.5% in 2023, 59.9% in 2024, and 55.8% in 2025. This data comes from the company's 20-F disclosure and covers three years, but customer names are not disclosed, making it impossible to directly determine which automotive manufacturer each specific customer corresponds to.
• Revenue contribution from a certain Chinese new energy vehicle manufacturer was 25.6%, 33.7%, and 14.7% in 2023, 2024, and 2025, respectively; in 2025, anonymous customers accounting for more than 10% of revenue included Customer A at 14.7%, Customer C at 17.1%, and Customer D at 10.0%.
• At the end of 2025, Customer C and Customer D accounted for 12.5% and 16.3% of the combined balance of accounts receivable, contract assets, and notes receivable, respectively. Customer names have been anonymized and cannot be matched one-to-one with specific OEMs.
• Automotive OEMs and large Tier-1 customers have large procurement scale and long certification cycles, and typically possess strong procurement bargaining power; vehicle model design wins do not necessarily ultimately convert into mass-production orders, customers continuously demand lower unit purchase prices, and product price reductions and low-price introduction of new products may compress supplier gross margins.
• The company's 2025 LiDAR average selling price was approximately USD 260/unit, lower than approximately USD 530/unit in 2024, mainly due to a higher proportion of low-priced ADAS product shipments, reflecting significant price pressure in the ADAS scale market.
• Robotaxi customers place relatively more emphasis on performance and reliability, while automotive customers especially emphasize cost; the company's further volume ramp-up still depends on customer orders, vehicle model sales, mass-production pace, and product ramp-up.
• Working capital evidence shows that downstream large customers exert strong influence over credit terms on the company: net accounts receivable rose from RMB 524.8 million in 2023 to RMB 765.0 million in 2024, and further rose to RMB 1.2622 billion (approximately USD 180.5 million) in 2025; combined turnover days for accounts receivable, contract assets, and notes receivable rose from 108 days in 2023 to 122 days in 2024, and further to 137 days in 2025, which the company explained was mainly due to certain OEM customers obtaining longer credit terms. Net accounts receivable at the end of 2025 was equivalent to approximately 41.7% of full-year revenue and approximately 2.9x full-year net profit, indicating that part of the industry chain's capital occupation has shifted to Hesai's side. The 2025 inventory balance was RMB 670.5 million (approximately USD 95.9 million); inventory turnover days declined from 191 days in 2023 to 169 days in 2024, and further to 122 days in 2025, indicating some improvement in inventory management, although the absolute inventory amount still rose with capacity expansion and sales growth. The research notes do not provide specific amounts for accounts payable and prepayments.
• Customer concentration is relatively high but declining: revenue contribution from the top five customers fell from 67.5% in 2023 to 55.8% in 2025. In 2025, Customer A, Customer C, and Customer D accounted for 14.7%, 17.1%, and 10.0% of revenue, respectively, and Customer C and Customer D accounted for 12.5% and 16.3% of the combined balance of accounts receivable, contract assets, and notes receivable at the end of 2025, respectively. The above data comes from the company's 20-F, but all customers are anonymously disclosed and cannot be matched one-to-one with specific OEMs; the research notes do not provide independently cross-verified third-party data on customer concentration, and the latest company annual report should prevail.

Hesai is positioned in the midstream system integration and mass-production segment of the LiDAR industry, which is high-tech and manufacturing-intensive; it is neither an upstream chip or laser supplier nor a downstream automotive company with terminal brand premium. The company's current profit improvement mainly relies on higher ADAS and robotics LiDAR penetration, increased shipment scale and capacity utilization, ASIC integration, and unit cost reductions brought by automation and scale effects, rather than strong pricing power. Further margin improvement depends on product mix upgrading toward high-performance, multi-LiDAR L3/L4 solutions, lower customer concentration, overseas customer expansion, and upstream cost control; automotive OEM price pressure, a higher share of low-priced ADAS products, and supply fluctuations in key chips and optoelectronic components remain the main constraints.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The latest financial report is Hesai Group's second-quarter results for the period ended June 30, 2026, announced by the company on August 18, 2026. USD amounts are primarily converted at the company's adopted exchange rate of RMB 6.7851 to USD 1. The research notes state that the relevant data comes from the company's earnings announcements and SEC disclosure documents.

In the second quarter of 2026, the company achieved GAAP profitability for the fifth consecutive quarter. Revenue growth mainly came from higher ADAS and robotics LiDAR shipments, but declining average selling prices partially offset the growth rate. Product revenue was RMB 859.7 million (approximately USD 126.7 million), up 22.9% year-over-year; service revenue was RMB 1.1 million (approximately USD 0.2 million), down 84.3% year-over-year. Quarterly gross margin was 40.1%, lower than 42.5% in the same period last year; GAAP operating profit was RMB 2.2 million (approximately USD 0.3 million), down 90.4% year-over-year, and non-GAAP operating profit was RMB 33.0 million (approximately USD 4.9 million), down 36.7% year-over-year. As of June 30, 2026, the company's cash reserves were RMB 7,050.6 million (approximately USD 1,039.1 million), total assets were RMB 11,004.2 million (approximately USD 1,621.8 million), total liabilities were RMB 2,053.5 million (approximately USD 302.6 million), and shareholders' equity was RMB 8,950.7 million (approximately USD 1,319.2 million). The company has a relatively large scale of cash and short-term investments and is in a clearly net cash position. The high net profit growth in the first half was partly affected by a low base and non-operating factors such as investment income and interest income, and it is not appropriate to simply extrapolate the full-year profit growth rate. Regarding shares, the company implemented an 8-for-1 share subdivision on July 10, 2026, and the financial statements have retrospectively adjusted historical per-share data.

3.2 Earnings Forecast

The earnings forecast uses publicly available analyst estimates from MarketScreener, with original units in RMB million and EPS in RMB; USD amounts are approximately converted at RMB 6.7851 to USD 1, with some exchange rate error. The MarketScreener forecast sample includes approximately 20 analysts and is not official company guidance. StockAnalysis's forecasts for 2026 revenue and net profit are basically consistent with MarketScreener, but its adjusted EPS is shown as 0.35 for 2026 and 0.62 for 2027, significantly lower than MarketScreener data, which may be related to differences in adjusted EPS definition, ADS-to-ordinary-share conversion, share subdivision treatment, or data scraping differences; therefore, EPS forecasts are uncertain. Regarding official company guidance, third-quarter 2026 net revenue is RMB 1,100 million to RMB 1,150 million (approximately USD 162 million to USD 169 million), up approximately 38% to 45% year-over-year; 2026 SGI revenue guidance is RMB 200 million to RMB 300 million (approximately USD 29.5 million to USD 44.2 million), and the company expects SGI business revenue of approximately USD 100 million in 2027 and break-even in 2027.

3.3 Valuation Levels and Institutional Ratings

As of the September 11, 2026 close, HSAI's stock price was approximately USD 17.31, market capitalization was approximately USD 2.71 billion, enterprise value was approximately USD 1.83 billion; TTM P/E was approximately 36.86x, Forward P/E was approximately 23.55x, P/S was approximately 5.51x, P/B was approximately 2.06x, EV/Sales was approximately 3.73x, EV/EBITDA was approximately 137.57x, current ratio was approximately 5.37, and Debt/Equity was approximately 0.08. MarketScreener's valuation page shows 2026 expected P/E of approximately 36x, P/B of approximately 1.93x, and EV/Sales of approximately 3.92x; 2027 expected P/E of approximately 19.6x, P/B of approximately 1.76x, and EV/Sales of approximately 2.78x. The current valuation reflects relatively high market expectations for revenue growth of approximately 30% to 40% from 2026 to 2028 and rapid growth in profit and EPS. If the 2027 net profit forecast can be achieved, valuation multiples may decline rapidly with profit growth; however, if LiDAR average selling prices continue to decline, gross margin remains under pressure, or commercialization of robotics, spatial intelligence, and SGI businesses falls short of expectations, the margin of safety in the current valuation may be limited. Second-quarter 2026 gross margin has already declined from 42.5% in the same period last year to 40.1%, and first-half profit growth was also affected by non-operating factors such as investment income and interest income, so using P/E alone may be misleading. Overall, HSAI is a growth stock with high growth expectations that has achieved preliminary profitability, but whose valuation still depends on future performance delivery; public institutional ratings are highly concentrated in Buy, and the current sample lacks Hold and Sell ratings, so the rating distribution may be optimistic.

4. Recent News and Announcements

4.1 September 8, 2026 Form 6-K Disclosure: Net Issued Share Capital Unchanged, Employee Options and RSUs Continue to Settle

As of August 31, 2026, Hesai Group (NASDAQ: HSAI) had 215,990,888 Class A ordinary shares and 1,041,146,800 Class B ordinary shares, for a total of 1,257,137,688 issued shares; treasury shares were 0, and the company confirmed that it met the public float requirement. In August 2026, 407,504 options under the 2021 equity incentive plan were exercised and 89,048 options lapsed; there were no new option or RSU grants during the month; proceeds from option exercises were approximately USD 103,337.26. The relevant exercises used Class B ordinary shares previously issued and registered in the name of the depositary for future equity incentive settlement, so the number of issued shares did not increase. During the same period, 24,000 RSUs vested and 62,128 RSUs lapsed. As of month-end, 60,485,560 shares remained issuable or transferable upon option exercise, and 17,354,496 shares remained issuable or transferable upon RSU vesting. Source: company investor relations website and relevant SEC filings.

4.2 No Actual Share Buyback Observed as of August 31, 2026

The August 2026 monthly securities变动 report did not disclose any share buyback; as of August 31, 2026, treasury shares were 0, and there were no repurchased shares awaiting cancellation. Therefore, existing disclosures do not show that HSAI actually executed any share buyback in August 2026. Shareholders had previously approved a general buyback authorization, but obtaining buyback authorization is not equivalent to having implemented a buyback. Source: company investor relations website and relevant SEC filings.

4.3 U.S. Court of Appeals for the D.C. Circuit Issued a Procedural Ruling in Favor of Hesai in the Section 1260H List Litigation

On August 18, 2026, the U.S. Court of Appeals for the D.C. Circuit ruled in Hesai Technology Co., Ltd. and Hesai Inc. v. U.S. Department of Defense, Case No. 25-5256. The court overturned the lower court's judgment supporting the U.S. Department of Defense and remanded the case for further proceedings. The court held that Hesai's inclusion on the "Chinese military companies" list related to Section 1260H of the U.S. National Defense Authorization Act could cause reputational harm and could affect its eligibility to participate in certain government contracts and obtain financially supported projects, thus involving a protected legal interest. The court determined that before finalizing the list, the U.S. Department of Defense should provide Hesai with the non-confidential materials it intended to rely on and give the company a meaningful opportunity to respond; because the Department of Defense did not provide sufficient pre-decision process, this procedural defect could not simply be regarded as harmless error. The ruling did not immediately remove Hesai's listing status, and the case must be remanded for remedial proceedings. As of September 13, 2026, Hesai was not automatically removed from the list as a result of the ruling; the ruling text also mentioned that the U.S. Department of Defense again included Hesai in the new annual Section 1260H list released in June 2026. The company therefore achieved a phased procedural victory, but government procurement, federal contracts, financial support, and customer compliance risks have not been fully eliminated; subsequent impact depends on the results of the U.S. Department of Defense's re-examination and whether it continues to appeal or takes other administrative measures. Source: U.S. Court of Appeals for the D.C. Circuit ruling and public case information.

4.4 Sharpa Related-Party Supply Agreement Approved by Shareholders, 2026 Annual Transaction Cap Raised to RMB 300 Million

On July 31, 2026, Hesai announced plans to expand its supply cooperation with Sharpa, supplying LiDAR products and robotic actuators to Sharpa and providing manufacturing and support services related to dexterous hands and other embodied intelligence products. The company planned to raise the 2026 annual transaction cap from RMB 100 million to RMB 300 million. Historical transaction amounts from March 25, 2026 to June 30, 2026 were approximately RMB 42 million, and the agreement term is from March 25 to December 31, 2026; the applicable cost-plus rate for robotic actuators and related manufacturing support services is expected to be 70% to 80%. The company expects that LiDAR product sales to Sharpa from July to December 2026 will increase by approximately 116x compared with actual sales from March 25 to June 30, 2026, and sales or scale of robotic actuators and related manufacturing support services are expected to increase by approximately 9x. Sharpa is a related party; Hesai's three co-founders Li Yifan, Sun Kai, and Xiang Shaoqing collectively indirectly hold a majority voting interest in Sharpa, so the transaction constitutes a continuing connected transaction under the Hong Kong Listing Rules. This transaction is a supply and manufacturing services arrangement, not a merger or acquisition; RMB 300 million is an annual transaction cap, not confirmed revenue or order amount. Source: company transaction announcement dated July 31, 2026 and SEC disclosure.

4.5 August 28, 2026 Extraordinary General Meeting Approved the Sharpa Revised Agreement and RMB 300 Million Annual Cap

The second extraordinary general meeting held on August 28, 2026 approved the Sharpa revised agreement and the RMB 300 million annual transaction cap. Total valid votes were 581,754,899, of which 581,636,027 were in favor, representing 99.9796%; 118,872 were against, representing 0.0204%; and 140,352 abstained. A total of 217,311,136 shares held by the three co-founders and their associates abstained from voting. Actual transaction amounts still depend on subsequent purchase orders and final contracts, and fulfillment amounts and related-party transaction disclosures need to be continuously monitored. Source: voting results of the shareholders' meeting disclosed with the SEC.

4.6 First-Half 2026 Results Provide Operating Context for Recent News Flow

The company disclosed on August 18, 2026 that first-half 2026 net revenue was RMB 1.541 billion, approximately USD 227 million, up 25% year-over-year; net profit was RMB 89 million, approximately USD 13 million, up 235% year-over-year. ADAS LiDAR shipments grew 87% year-over-year, and robotics LiDAR shipments grew 165% year-over-year. Second-quarter 2026 non-GAAP net profit attributable to ordinary shareholders was RMB 101.3 million, approximately USD 14.9 million, up 38.3% year-over-year. The above USD amounts are based on the conversion basis listed in the company's announcement. The results show that the company is advancing both automotive ADAS LiDAR and robotics and embodied intelligence businesses. Source: SEC Form 6-K dated August 18, 2026 and earnings announcement.

4.7 ADS Ratio Adjusted to 1 ADS Representing 8 Ordinary Shares Effective July 10, 2026

Effective July 10, 2026, HSAI's ADS ratio changed from 1 ADS representing 1 ordinary share to 1 ADS representing 8 ordinary shares. This change resulted from an eight-for-one ordinary share split, not a split of the ADS itself; the Nasdaq announcement explicitly stated that the ADR itself was not split. This adjustment may affect per-share quotations, historical price series comparability, per-share metrics, option exercise data, and investors' assessment of the company's total share capital and ADS float. Source: Nasdaq Equity Corporate Actions Alert #2026-479.

4.8 No New Major M&A, Asset Sales, or Corporate Combination Transactions Found as of September 13, 2026

As of September 13, 2026, based on searches of the company's investor relations website, SEC 6-K disclosures, and public materials for September 2026, no announcement by Hesai of major mergers and acquisitions, asset sales, or corporate combination transactions was found. The latest Form 6-K dated September 8, 2026 mainly disclosed securities changes as of August 31, 2026, and did not disclose new M&A, major financing, or actual share buybacks. The most important recent business expansion matter is the related-party supply and manufacturing services arrangement with Sharpa, rather than equity acquisition or M&A. The above conclusion only means that no relevant public disclosure was retrieved as of that date, and does not mean the company has no transactions that have not yet been announced or have not reached the disclosure threshold.

5. Stock Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, HSAI closed at 17.31 USD, still below MA5, MA10, and MA20, only slightly above MA50, and significantly below MA200, overall showing a pullback after a rapid rebound and an oscillating weak state. The stock price is in the lower-middle part of the 52-week range, still approximately 43.9% below the 52-week high of 30.85 USD, but approximately 21.1% above the July low of 14.29 USD. MACD remains below the zero line, RSI is in a neutral-to-weak to weak range, and Bollinger Bands show the stock price slightly below the middle band but not yet touching the lower band. September 11 volume and turnover were both below the 20-day average, and the decline has not yet shown abnormal volume expansion; going forward, key areas to watch are the 16.0~16.4 USD support, the 18.3~19.5 USD resistance band, and whether volume can accompany a price breakout.

5.3 Short-Term Outlook (Next Week, Scenario Analysis, for Reference Only)

⚠️ Risk Warning: The following content is only a subjective scenario analysis based on September 11, 2026 closing data, historical prices, and technical indicators. It does not constitute investment advice and does not represent a deterministic price forecast. Scenario weights are subjective heuristic weights set based on current technical and capital conditions, not statistical probabilities.

① Key Technical Levels

② Next-Week Scenarios (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively high weight, approximately 60%; subjective heuristic weight, not statistical probability): Reference range is 16.40~18.30 USD. Trigger conditions include holding the 16.00~16.40 USD support, volume remaining in the recent normal range of approximately 0.9~1.7 million shares, MACD not continuing to expand clearly downward, and risk appetite for Nasdaq and China concept technology stocks not deteriorating significantly. In this scenario, the price may fluctuate repeatedly around MA20 at approximately 17.43 USD.
• Weaker downside (medium weight, approximately 30%; subjective heuristic weight, not statistical probability): Reference range is 14.30~16.40 USD. Trigger conditions include an effective close below 16.00 USD, consecutive expansion in down-day volume to approximately 2.0 million shares or more, MACD continuing to weaken below the zero line, or simultaneous weakness in Nasdaq, China concept stocks, and the autonomous driving/robotics sectors. If 16.00 USD is lost, watch for a pullback toward the Bollinger lower band at approximately 15.71 USD and the 14.29 USD low; if the 14.30~14.80 USD area is lost, the downside structure will deteriorate significantly.
• Stronger rebound (relatively low weight, approximately 10%; subjective heuristic weight, not statistical probability): Reference range is 18.30~19.50 USD, with 20.50~21.10 USD to watch in a strong case. Trigger conditions include the closing price regaining 18.30~18.90 USD, single-day volume expanding to approximately 2.0~2.5 million shares, remaining above MA20 for several consecutive days, MACD bullish crossover or a clear narrowing of negative values, and improved risk appetite from LiDAR, autonomous driving, robotics, or company order-related news. Only after a volume breakout above 19.50 USD would the repair space toward 20.50~21.10 USD gain stronger technical confirmation.

③ Capital and Liquidity Background

As of September 11, 2026, HSAI volume was approximately 1.015 million shares and turnover was approximately 17.56 million USD, below the 20-day average volume of 1.727 million shares and the estimated 20-day average daily turnover of approximately 29.89 million USD based on 17.31 USD; estimated turnover rate was approximately 0.80%, below the approximately 1.37% corresponding to the 20-day average volume. For a small- to mid-cap growth stock with total market capitalization of approximately 2.71 billion USD, current liquidity is acceptable, but significant price slippage may still occur under shocks from earnings, industry news, or China concept stock risk events. Institutional structure data is as of June 30, 2026; 13F data has at least a quarterly disclosure lag, and different providers report institutional ownership ranging from approximately 26.64% to 49.95%, which cannot represent real-time holdings in September 2026; disclosed institutions mainly include public fund managers, bank asset management, insurance asset management, and hedge funds. The specific verifiable volume confirmation signal is: if single-day volume continues to expand to approximately 2.0~2.5 million shares, corresponding to turnover of approximately 35~43 million USD, while simultaneously breaking through the 18.30~18.90 USD resistance area, it can be regarded as an observation signal of improved price-volume coordination.

Key focus: whether single-day volume can reach approximately 2.0~2.5 million shares and turnover approximately 35~43 million USD, and whether this occurs simultaneously with a breakout above 18.30~18.90 USD or a higher resistance level; volume expansion alone without breaking resistance is not sufficient to confirm trend improvement.

④ Points to Watch (Observation Ideas Only, Not Trading Instructions)

• Watch whether the stock price can regain MA20 at approximately 17.43 USD and further break through the 18.30~18.90 USD resistance area; this observation idea is not a buy, sell, or hold instruction.
• If the closing price falls below 16.00 USD and down-day volume continues to expand, watch the risk of a pullback toward the Bollinger lower band at 15.71 USD and the strong support area of 14.30~14.80 USD; this observation idea is not a trading instruction.
• If volume expands to approximately 2.0~2.5 million shares or more while the price breaks through 18.90~19.50 USD, this can serve as an observation signal of improved price-volume conditions; this observation idea is not a trading instruction.
• Watch autonomous driving, LiDAR, robotics, and company order-related news, as well as changes in overall risk appetite for Nasdaq and China concept technology stocks; this observation idea is not a trading instruction.

The above scenario analysis is based on September 11, 2026 closing data and historical price and technical indicator calculations. Short-term stock prices will also be disturbed by multiple factors such as news flow, capital flows, overall market environment, exchange rates, and China concept stock risk appetite. Technical indicators themselves have lag and limitations, do not guarantee future actual trends, and do not constitute buy or sell recommendations. Please make independent judgments based on the latest market information and bear investment risks yourself.

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

The LiDAR industry sits at the intersection of automotive ADAS, Robotaxi, robotics, and industrial automation. Competition comes not only from different LiDAR manufacturers, but also from substitute sensors such as cameras and millimeter-wave radar, automotive OEM in-house perception systems, Tier-1 suppliers' proprietary solutions, and different technology routes including mechanical, hybrid solid-state, pure solid-state, MEMS, Flash, and digital LiDAR. Customers focus on performance, quality, and cost simultaneously; automotive customers especially emphasize cost, while Robotaxi customers place relatively more emphasis on performance and reliability.

6.2 Competitive Landscape

• Core industry competitive factors include unit cost reduction, scale manufacturing, automotive-grade reliability, and ASIC integration.
• S&P Global Mobility noted that in 2023, China's RoboSense, Hesai, and Huawei together accounted for more than 65% of global LiDAR sales. This data comes from third-party industry research, not Hesai audited financial statement figures, and the statistical basis may include different products and market scopes, so it cannot be directly equated with 2025 market share.
• In its 2025 annual report and earnings materials, Hesai stated that according to Gasgoo data, the company's 2025 long-range automotive LiDAR market share exceeded 40%, and in 2025 it obtained ADAS design wins with more than 160 vehicle models across 40 automotive brands globally. This data is company-disclosed or company-cited third-party data and has not been fully cross-verified through independent multi-source statistics.
• Hesai's total LiDAR shipments in 2025 were 1,620,406 units, of which ADAS LiDAR was 1,381,133 units and robotics LiDAR was 239,273 units; ADAS and robotics shipments grew 202.6% and 425.8% year-over-year, respectively.
• The company plans to increase annual capacity to more than 4 million units in 2026, but this is management planning and is not equivalent to effective capacity already fully built and immediately available as of the end of 2025; actual capacity utilization still depends on customer orders, product ramp-up, and production line utilization.
• Major industry risks include continued automotive OEM price pressure and annual price reductions, a higher share of low-priced ADAS products, supply fluctuations in key components, capital occupation caused by longer customer credit terms, and substitute competition from cameras, millimeter-wave radar, OEM in-house solutions, and other LiDAR manufacturers.

6.3 Main Competitors

Hesai and RoboSense have the most similar business structures, both covering ADAS, Robotaxi, and robotics applications and benefiting from China's new energy vehicle and ADAS penetration. Compared with Ouster, Hesai is more oriented toward automotive LiDAR and own factories/internal manufacturing; compared with Innoviz and Luminar, Hesai has advantages in China new energy vehicle customer coverage, mass-production scale, and shipments; compared with Valeo, Hesai is more focused on LiDAR, in-house ASIC development, cost control, and large-scale mass production in the China market, while Valeo has greater advantages in global automotive Tier-1 supply chain relationships and system integration. Overall, Hesai's competitive moat comes from a combination of "ASIC design + automotive-grade mass production + cost control + customer design wins + scale shipments," but its margins are still constrained by OEM procurement price pressure, declining product ASP, upstream key component costs, and competition from substitute technologies.

7. Risk Warnings

• Customer concentration and accounts receivable risk remain relatively high. In 2025, the top five customers accounted for 55.8% of revenue, and Customer C and Customer D accounted for 12.5% and 16.3% of the combined balance of accounts receivable, contract assets, and notes receivable, respectively; the relevant customers are anonymously disclosed. If major customers extend payment cycles, reduce procurement, or vehicle model sales fall short of expectations, this may affect both revenue recognition and cash collection.
• Declining product ASP may continue to compress gross margin. In 2025, LiDAR average selling price was approximately USD 260/unit, significantly lower than approximately USD 530/unit in 2024; second-quarter 2026 gross margin has already declined to 40.1%, lower than 42.5% in the same period last year. If the share of low-priced ADAS products continues to rise while scale effects are insufficient to offset price reduction pressure, revenue growth may not necessarily translate into simultaneous profit growth.
• Automotive OEM and Tier-1 customers have strong bargaining power, and vehicle model design wins do not necessarily convert into mass-production revenue. Customers continuously demand lower unit purchase prices, and vehicle model sales, mass-production pace, and product ramp-up may all deviate from expectations, preventing the company's capacity expansion and market share targets from being fully achieved.
• Supply of key components may affect costs and delivery. Lasers, receivers, automotive-grade chips, and other optical components procured by the company may experience supply tightness, price fluctuations, or longer delivery cycles; although the company has buffered through in-house ASICs, automated manufacturing, and safety stock, materials and component costs in 2025 still reached RMB 1.2491 billion (approximately USD 178.6 million), accounting for 41.3% of revenue.
• New businesses carry related-party transaction fulfillment and commercialization uncertainty. Sharpa is a related party in which the company's founders indirectly hold a majority voting interest, and the 2026 transaction cap has been raised to RMB 300 million; this amount is not confirmed revenue, and actual transactions depend on subsequent orders and contracts. If volume ramp-up of robotic actuators, dexterous hands, and embodied intelligence-related services falls below expectations, or if the scale and profit contribution of related-party transactions fall short of plans, this may affect new business growth expectations.
• U.S. regulatory and customer compliance risks have not been eliminated. The ruling by the U.S. Court of Appeals for the D.C. Circuit is a procedural victory and did not immediately remove Hesai from the Section 1260H-related list; the company remains included in the new 2026 list. Subsequent re-examination, possible appeals, or administrative measures may still affect certain U.S. government contracts, financially supported projects, and customer compliance judgments.
• Valuation and stock price volatility risk is relatively high. As of September 11, 2026, HSAI's stock price was USD 17.31, still approximately 43.9% below the 52-week high of USD 30.85, with a TTM P/E of approximately 36.86x; technically, it is below MA5, MA10, MA20, and MA200, and MACD is below the zero line. If revenue, gross margin, or robotics business delivery falls short of market expectations, valuation compression may amplify stock price volatility; approximately 7.20% of total share capital is shorted, which may also amplify price changes under news shocks.

8. Conclusion and Outlook

Hesai's growth logic lies in scaled penetration of ADAS LiDAR, expansion of robotics and embodied intelligence applications, and unit cost reductions brought by in-house ASICs, automated manufacturing, and scale effects. Shipments grew substantially in 2025 and the company achieved full-year GAAP profitability, while first-half 2026 still maintained revenue and profit growth, indicating that the company has initially crossed the stage from R&D investment to mass-production profitability. The company's relatively high cash reserves also provide some financial buffer for capacity expansion and new business investment.

Future performance delivery depends on ADAS product shipments, customer vehicle model sales, design-win-to-mass-production progress, and commercialization of robotics business. The company plans to increase 2026 annual capacity to more than 4 million units, but this target is management planning, and actual utilization still depends on orders and production ramp-up. The 2026 transaction cap for the Sharpa related-party supply and manufacturing services arrangement is RMB 300 million, but the cap is not equivalent to confirmed revenue, and actual fulfillment amounts, sales volume, and profit contribution still need to be observed.

The company remains a manufacturing-oriented technology enterprise in a stage of high growth but with limited pricing power. A higher share of low-priced ADAS products may continue to push down ASP and gross margin, and automotive OEM procurement price pressure, customer concentration, accounts receivable turnover, and key component supply may also limit profit improvement. The current valuation is highly dependent on revenue and profit growth from 2026 to 2028, and the institutional rating sample is concentrated in Buy, so going forward it is more important to focus on whether revenue growth can translate into stable operating profit and cash flow, rather than judging trends solely based on non-operating investment income, interest income, or short-term profit growth rates.

Data Sources

• Hesai Group_December 31, 2025
• https://www.sec.gov/Archives/edgar/data/1861737/000110465926048075/tm2612222d1_ex99-1.pdf
• BriefCASE: Chinese suppliers gain strong foothold in global lidar market
• 2024 ANNUAL REPORT 5
• oust-20251231
• Innoviz Technologies Ltd. - 1835654 - 2026
• LiDAR sensor | Autonomous vehicle sensors | Valeo
• https://www.sec.gov/Archives/edgar/data/1758057/000114036126011477/ef20067963-10k.htm?utm_source=openai
• Hesai Group Reports Second Quarter 2026 Unaudited Financial Results - Hesai Group
• www.sec.gov
• Hesai Group Reports Fourth Quarter and Full Year 2025 Unaudited Financial Results - Hesai Group
• Hesai Group: Financial Data Forecasts Estimates and Expectations | HSAI | US4280501085 | MarketScreener
• Hesai Group (HSAI) Stock Forecast & Analyst Price Targets
• Hesai Group Sponsored ADR (HSAI) Stock Forecast, Price Targets and Analysts Predictions - TipRanks.com
• Hesai Group (HSAI) Statistics & Valuation
• EDGAR Filing Documents for 0001104659-26-048025
• Form 6-K for Hesai Group filed 09/08/2026
• United States Court of Appeals
• www.sec.gov
• https://www.sec.gov/Archives/edgar/data/1861737/000110465926098050/tm2623467d1_ex99-2.htm?utm_source=openai
• Equity Corporate Actions Alert #2026 - 479 Information Regarding the Ratio Change for Hesai Group American Depositary Share (HSAI)
• News Releases - Hesai Group
• Hesai Group (HSAI) Stock Price & Overview
• ヘサイ・グループ〖HSAI〗：株価時系列・推移 - Yahoo!ファイナンス
• Hesai Group (HSAI) Stock Price History 2023-2026
• Hesai ADR RSI and Technical Analysis - Investing.com India
• Hesai Group Institutional Ownership | HSAI | Business Quant

This report was automatically retrieved, compiled, and generated by AI based on public channel information, with information as of the September 11, 2026 U.S. market close; September 13, 2026 is a Sunday, and the next trading day has not yet opened. HSAI is the ADS of Hesai Group trading on the NASDAQ Global Select Market; 1 ADS represents 1 Class B ordinary share. There may be timeliness differences, and specific data should be based on the company's official announcements and authoritative data terminals. This report is solely for information compilation and research reference, does not constitute any investment advice, and investors should make independent judgments and bear investment risks themselves.