Hesai(US:HSAI) Soochow Securities·2025-03-11 07:21Investment Rating - The report assigns a "Buy" rating for Hesai Technology, marking its first coverage [3]. Core Views - Hesai Technology is a leader in the lidar industry with advanced technology and extensive collaboration with downstream customers. The company has secured over 100 pre-installed production models from 22 major OEM clients, positioning it to benefit from the growing demand for automotive and robotic lidar in China [3]. - The report forecasts Hesai Technology's total revenue for 2024-2026 to be approximately 2.09 billion, 3.27 billion, and 4.66 billion CNY, corresponding to 290 million, 450 million, and 640 million USD, respectively. The current market valuation corresponds to price-to-sales (P/S) ratios of 7.6, 4.9, and 3.4 for the same years [3]. Summary by Sections 1. Lidar Leader with Comprehensive Product Matrix - Hesai Technology, established in 2014, is a leading lidar R&D and manufacturing company, with products widely used in advanced driver-assistance systems (ADAS), autonomous vehicles, and various intelligent robotic applications [17]. - The company has developed a complete product line with eight series to meet different needs in ADAS, autonomous driving, and industrial applications [18][19]. 2. Automotive and Robotics Demand Driving Lidar Growth - The lidar market is expected to reach a trillion-dollar scale, with significant growth in the automotive sector, particularly in passenger vehicles and Robotaxi applications. The report anticipates a compound annual growth rate (CAGR) of 38% for the global lidar market from 2023 to 2029 [43][52]. - In 2024, the installation of lidar in Chinese passenger vehicles is projected to reach 1.595 million units, reflecting a year-on-year increase of 109.3% [52]. 3. Self-Built Capacity and Self-Developed Chips - Hesai Technology has established a fully integrated lidar manufacturing center, ensuring high-quality production through rigorous testing. The company has applied for 1,565 patents in key lidar technology areas, maintaining a technological edge [9][3]. 4. Revenue Forecast and Investment Recommendations - The report indicates that Hesai Technology's revenue for the first three quarters of 2024 is expected to be 1.36 billion CNY, showing a year-on-year growth of 3.2%. The company aims to achieve profitability under non-GAAP standards in 2024, becoming the first lidar company to do so globally [26][30].