Hesai(US:HSAI) HTSC·2025-11-13 13:53Investment Rating - The investment rating for the company is "Buy" with a target price of $30.72 [1] Core Views - The company reported Q3 2025 revenue of RMB 795 million, representing a year-over-year increase of 47.5% and a quarter-over-quarter increase of 12.6%. The GAAP net profit was RMB 256 million, marking a significant turnaround from losses, with a quarter-over-quarter growth of 481% [1] - The company anticipates laser radar shipments to exceed 600,000 units in Q4, with revenue expected to surpass RMB 1 billion [1] - The company is well-positioned for continued growth in ADAS and Robotics products, supported by its technological advantages in optical chips, which are expected to maintain stable gross margins [1] Summary by Sections ADAS Sector - The company shipped 380,759 units of ADAS laser radar in Q3, a year-over-year increase of 193.1% and a quarter-over-quarter increase of 25.4%. Demand from major domestic OEMs like Xiaomi, Leap Motor, and BYD has driven this growth [2] - Exclusive supply agreements have been signed with the top two core customers for 2026, and the company has secured L3 level laser radar orders from a top 3 new energy vehicle manufacturer, expected to start supply in the second half of 2026 [2] - The anticipated mass production of L3 autonomous driving vehicles is expected to increase the value of laser radar per vehicle to between $500 and $1,000 [2] Robotics Sector - The company shipped 60,639 units of robotic laser radar, reflecting a year-over-year increase of 1311.9%. The robotics market is rapidly expanding, becoming a significant growth driver for the company [3] - The company has become a supplier for various global Robovehicle and Robot projects, with mechanical rotating radar maintaining high gross margins [3] - By 2026, the company expects to double its robotic business shipments and is exploring new application areas such as smart cities and industrial automation, aiming to become a comprehensive provider of perception and AI solutions [3] Valuation - The target price remains at $30.72, supported by strong demand in the intelligent driving and robotics sectors. The company’s shipment forecasts for 2025, 2026, and 2027 are 1.41 million, 2.16 million, and 2.95 million units, respectively [4] - Revenue forecasts for 2025, 2026, and 2027 are RMB 3.27 billion, RMB 4.73 billion, and RMB 6.39 billion, with net profit estimates of RMB 712 million and RMB 1.1 billion for 2026 and 2027, respectively [4]