Hesai(HSAI) 国海证券·2024-02-24 16:00Investment Rating - The report assigns a "Buy" rating for Hesai Technology (HSAI) as part of its initial coverage [1]. Core Insights - Hesai Technology is a leading global manufacturer of LiDAR systems, focusing on the development, manufacturing, and sales of LiDAR products primarily for ADAS, autonomous driving, and robotics applications. The company has shown significant growth in both revenue and delivery volumes, surpassing competitors in the U.S. market [4][21]. - The report forecasts that the domestic automotive LiDAR shipment volume is expected to reach 5.7 million, 26.8 million, and 70.3 million units from 2023 to 2025, driven by advancements in intelligent driving technology and regulatory support for higher-level autonomous driving [5][45]. - The company has a strong cash reserve of 3.2 billion RMB and has achieved positive operating cash flow for three consecutive quarters in 2023, indicating a solid financial position for ongoing product innovation and technological advancements [4][21]. Summary by Sections Company Overview - Hesai Technology was established in October 2014 and has focused on LiDAR products since 2016. The company has delivered increasing volumes of LiDAR units from 2,890 in 2019 to 134,380 in the first three quarters of 2023, with revenue growing from 1.83 million in 2023 [4][21]. Market Potential - The global LiDAR market is projected to grow significantly, with the ADAS segment expected to expand from a mere 2% market share in 2021 to a much larger portion as the technology becomes more integrated into vehicles. The report highlights that the market for automotive LiDAR is just beginning to take off, with major automotive manufacturers increasingly adopting these technologies [5][28]. Financial Performance - The report provides revenue forecasts for Hesai Technology, estimating revenues of 417.13 million, and 70 million [67][70]. Competitive Position - Hesai Technology has established partnerships with 15 major OEMs and Tier-1 clients, securing over 50 models for mass production. The company is positioned as a leader in the LiDAR market, with its products being utilized in various high-profile automotive projects [57][66]. Technological Advancements - The company has developed proprietary ASIC technology that enhances the performance and reduces the cost of its LiDAR products. This technological edge is expected to drive further cost reductions and product iterations, positioning Hesai Technology favorably in the competitive landscape [50][63].