Investment Rating - The report initiates coverage on Hesai Group (HSAI US) with a "Buy" rating and a target price of 16.3perADS,basedona4.8x2025expectedprice−to−salesratio[2][3]CoreViewpoints−HesaiGroupisagloballeaderin3DLiDARsolutions,withastrongcompetitiveadvantageintheindustry[5]−Thecompanyisexpectedtoreachaprofitabilityturningpointin2024,drivenbyincreasedshipmentsofexistingLiDARproducts,thelaunchofacost−effectivenewATseriesin2025,andimprovedoperationalefficiency[2]−HesaiGroupisprojectedtoachieveNon−GAAPnetprofitsofRMB9millionin2024andRMB141millionin2025[2]−Thecompanyhasestablishedmassproductionpartnershipswith20domesticandinternationalautomakersfor75vehiclemodelsasof3Q24[5]−HesaiGroupholdsa373.63 billion by 2029, with a CAGR of 38% from 2023 to 2029 [12] - The passenger car (PC) and light commercial vehicle (LCV)/autonomous taxi LiDAR markets are projected to reach 2.99billionand638 million, respectively, by 2029, with CAGRs of 39% and 31% from 2023 to 2029 [12] - Hesai Group is well-positioned to benefit from the strong growth in the LiDAR market, given its leading position in both global and Chinese LiDAR solution markets [12] Competitive Advantages - Hesai Group's competitive advantages include its leading technological capabilities, such as the self-developed ASIC chip, which enables continuous cost optimization [5] - The company's in-house manufacturing and highly automated production methods provide it with leading mass production capabilities [5] - Strong customer relationships drive continuous market penetration [5] Valuation and Target Price - The target valuation of RMB 15.9 billion (equivalent to $16.3 per ADS) is based on a 4.8x 2025 expected price-to-sales ratio, which is 10% higher than the industry average of 4.4x [3] - This valuation is supported by Hesai Group's industry-leading financial performance and a strong product delivery plan in 2025, driven by incremental contributions from leading automakers [3]
Hesai(HSAI) 招银国际·2024-12-27 14:03