Hesai(US:HSAI) Haitong Securities International·2025-05-28 12:23Investment Rating - The report maintains an "Outperform" rating for Hesai Tech with a target price of USD 24.10, reflecting a 7.0x price-to-sales (P/S) ratio for 2025 [2][6]. Core Insights - In Q1 2025, Hesai Tech reported a revenue of RMB 525 million, representing a year-over-year increase of 46.3% and a gross profit of RMB 219 million, which is a 57.5% increase year-over-year [3][14]. - The company expects Q2 2025 revenue to be between RMB 680 million and RMB 720 million, with deliveries exceeding 300,000 units and a gross profit margin around 40% [3][14]. - The company has ramped up production of its low-cost ATX LiDAR, achieving better-than-expected margins due to optimized cost structures [4][15]. - Hesai Tech has made significant inroads into overseas markets, securing exclusive partnerships with top OEMs in Europe and Japan [5][15]. Financial Summary - Revenue projections for 2025-2027 are RMB 3.245 billion, RMB 4.795 billion, and RMB 6.851 billion, respectively, with net profits expected to be RMB 241 million, RMB 552 million, and RMB 1.041 billion [6][16]. - The gross profit margin is projected to decline from 39.7% in 2025 to 32.6% in 2027, while the return on equity (ROE) is expected to improve from 5.8% in 2025 to 18.0% in 2027 [10][12].