Core Viewpoint - Hesai Group's application for a secondary listing in Hong Kong has been approved, intensifying competition in the lidar market, particularly against Suton Technology, which previously enjoyed a monopoly in the Hong Kong market [1][8]. Group 1: Company Performance Comparison - In the first half of 2025, Hesai's lidar unit price was 2,248 RMB per unit, while Suton's was 2,936 RMB, indicating a 30% premium for Suton [2][4]. - Hesai's total lidar delivery volume reached 547,913 units, a year-on-year increase of 276.2%, while Suton's was only 266,800 units, with a growth rate of 9.6% [2][4]. - The disparity in delivery volumes is attributed to Hesai's partnerships with high-volume automakers like Li Auto and Xiaomi, while Suton collaborates with several brands that have limited sales [3]. Group 2: Financial Metrics - In the first half of 2025, Hesai achieved a gross margin of 42.2%, compared to Suton's 25.9%, reflecting significant differences in cost control and commercial efficiency [5][6]. - Hesai's revenue for the first half of 2025 was 1.23 billion RMB, while Suton's was only 780 million RMB, with projections for the full year indicating Hesai could reach 3.24 billion RMB compared to Suton's 2.38 billion RMB [7]. - Hesai is expected to turn a profit in 2025, with a projected net profit of 290 million RMB, while Suton is anticipated to incur a loss of 220 million RMB [7]. Group 3: Market Dynamics and Valuation - Suton's previous advantage as the only listed lidar company in Hong Kong is diminishing with Hesai's entry, which is expected to shift investor focus towards Hesai due to its profitability and growth potential [8][10]. - The anticipated fundraising of 300 million USD (approximately 2.34 billion HKD) by Hesai will further enhance its competitive position, allowing for capacity expansion and technological advancements [9][10]. - The shift from scarcity-driven valuation to fundamentals-based pricing will likely pressure Suton's stock, as its current valuation may not justify its financial performance [10].