Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 51.48 [7][5]. Core Insights - The company has successfully entered the mass production phase of its digital laser radar products, with significant growth in delivery volumes and revenue expected in the coming quarters [1][5]. - The ADAS digital product matrix has entered the delivery phase, with a substantial increase in the number of designated models, indicating a strong foundation for scaling [2]. - The Robotaxi business is accelerating its penetration into the L4 market, with new partnerships enhancing the reliability and performance of its products [3]. - The robotics business is experiencing rapid growth, driven by the introduction of new products and applications across various scenarios [4]. Summary by Sections Financial Performance - The company reported a shipment of 150,100 units of laser radar and 35,500 units of robots in the third quarter, generating revenue of RMB 407 million, with a net profit of -RMB 101 million [1]. - Revenue forecasts for 2025, 2026, and 2027 are projected at RMB 2.4 billion, RMB 3.7 billion, and RMB 5.1 billion respectively, with net profits expected to turn positive by 2026 [5][10]. Business Segments - The ADAS business has secured designations from 13 automakers for 56 models, with the EM4 radar positioned as a core component for L3 regulations [2]. - The Robotaxi segment has gained traction with the announcement of a new partnership with Didi for its next-generation models, indicating a strong market presence [3]. - The robotics segment is seeing a 393.1% year-on-year increase in delivery volumes, supported by innovative product offerings [4]. Valuation Metrics - The report assigns a price-to-sales (PS) ratio of 6.09x for 2026, reflecting a premium compared to comparable companies, indicating confidence in the company's growth trajectory [5][14]. - The company's market capitalization is approximately HKD 15.125 billion, with a recent closing price of HKD 31.22 [8].

Core Viewpoint - SUTENG JUCHUANG (02498) reported better-than-expected Q3 results, with total revenue of approximately 407 million yuan, and anticipates a significant increase in digital lidar sales in Q4, expecting to achieve profitability for the first time in a single quarter [1] Group 1: Financial Performance - In Q3, the company achieved total revenue of approximately 407 million yuan [1] - The company expects to achieve profitability in Q4 for the first time in a single quarter [1] Group 2: Stock Activity - On November 26, the company announced a buyback of 323,000 shares at a cost of approximately 10.01 million HKD [1] Group 3: Market Outlook - According to a report from China Merchants Securities International, the company is expected to achieve profitability in Q4, with strong shipments of ADAS and robotics projected to exceed one million units [1] - The report anticipates that Q4 lidar shipments will reach a record high, with October deliveries at 120,000 units and expected month-on-month growth in November and December [1] - By 2025, ADAS shipments are projected to approach 600,000 units, and exceed one million units by 2026, with the digital EM platform already designated for 49 vehicle models [1]

Core Viewpoint - SUTENG JUCHUANG (02498) reported better-than-expected Q3 results, with total revenue of approximately 407 million yuan, and anticipates a significant increase in digital lidar sales in Q4, expecting to achieve profitability for the first time in a single quarter [1] Group 1: Financial Performance - In Q3, the company achieved total revenue of approximately 407 million yuan [1] - The company expects to achieve profitability in Q4 for the first time in a single quarter [1] Group 2: Stock Activity - On November 26, the company announced a buyback of 323,000 shares at a cost of approximately 10.01 million HKD [1] Group 3: Market Outlook - According to a report from China Merchants Securities International, the company is expected to achieve profitability in Q4, with strong shipments of ADAS and robotics projected to exceed one million units [1] - The report anticipates that Q4 lidar shipments will reach a record high, with October deliveries at 120,000 units and expected month-on-month growth in November and December [1] - By 2025, ADAS shipments are projected to approach 600,000 units, and exceed one million units by 2026, with the digital EM platform already designated for 49 vehicle models [1]

Core Viewpoint - Morgan Stanley reaffirms "Buy" rating for SUTENG JUCHUANG (02498), stating that it is a good entry point with a target price of HKD 53 [1] Group 1: Company Performance - The company is expected to achieve LiDAR shipments of 455,000 units in Q4 2025 and 2.26 million units for the entire year of 2026, with revenue growth rates of 58% and 68% year-on-year respectively [1] - The company anticipates turning profitable in Q4 2025 [1] Group 2: Recent Achievements - In October, the total LiDAR delivery volume exceeded 120,000 units, setting a new historical high, and the digital platform design solutions have entered mass production [1] - Management expects strong future orders for ADAS LiDAR due to an increasing number of design solutions from a broader customer base [1] Group 3: Strategic Developments - Significant progress has been made in the robotics sector, with large-scale production for robotic lawnmower clients set to begin in Q4 2025 [1] - The company is collaborating with Didi to develop a new generation of autonomous taxis, each equipped with 10 sets of LiDAR [1] - New orders have been secured from urban delivery manufacturers [1]

Core Viewpoint - Morgan Stanley reaffirms "Buy" rating for SUTENG JUCHUANG (02498), indicating a favorable entry point with a target price of HKD 53 [1] Group 1: Company Performance - The company is projected to achieve LiDAR shipments of 455,000 units in Q4 2025 and 2.26 million units for the entire year of 2026, with revenue growth rates of 58% and 68% year-on-year respectively [1] - In October, the total delivery of LiDAR units exceeded 120,000, marking a historical high, and the digital platform design solutions have entered mass production [1] - The management anticipates strong future orders for ADAS LiDAR due to an increasing number of design solutions from a broader customer base [1] Group 2: Strategic Developments - Significant progress has been made in the robotics sector, with large-scale production for robotic lawnmower clients set to begin in Q4 2025 [1] - The company is collaborating with Didi to develop a new generation of autonomous taxis, each equipped with 10 sets of LiDAR [1] - New orders have been secured from urban delivery manufacturers [1]

证券研究报告·海外公司点评·软件服务(HS) | [Table_EPS] 盈利预测与估值 | 2023A | 2024A | 2025E | 2026E | 2027E | | --- | --- | --- | --- | --- | --- | | 营业总收入（百万元） | 1,120 | 1,649 | 2,171 | 3,407 | 4,343 | | 同比(%) | 111.22 | 47.20 | 31.63 | 56.96 | 27.49 | | 归母净利润（百万元） | (4,336.63) | (481.83) | (228.12) | 58.07 | 378.66 | | 同比(%) | (107.63) | 88.89 | 52.66 | 125.46 | 552.07 | | EPS-最新摊薄（元/股） | (8.95) | (0.99) | (0.47) | 0.12 | 0.78 | | P/S（现价&最新摊薄） | 12.48 | 8.48 | 6.44 | 4.10 | 3.22 | [Table_Tag] [投资要点 Table_Summary] 2025 年 11 月 28 ...

Core Viewpoint - In Q3 2025, the company achieved revenue of 407 million yuan, a year-on-year decrease of 0.19%, with ADAS product revenue at 245 million yuan, down 26%, while revenue from the robotics sector increased by 158% to 142 million yuan. The gross margin improved to 23.93%, up 6.47 percentage points year-on-year, with ADAS gross margin at 18.1%, up 4 percentage points, and robotics gross margin at 37.2%, up 2.6 percentage points. The net loss for the quarter was approximately 101 million yuan, compared to a loss of 82 million yuan in the same period last year. The company aims to achieve profitability in Q4 and expects a doubling of ADAS radar shipments in 2026 driven by the launch of digital products like EMX [1][2][3] Revenue and Profitability - The company anticipates a turning point in profitability in Q4, with Q3 revenue of 407 million yuan, a slight decline of 0.19% year-on-year. ADAS product revenue decreased by 26% to 245 million yuan, while robotics revenue surged by 158% to 142 million yuan. The gross margin for Q3 was 23.93%, reflecting a year-on-year improvement of 6.47 percentage points, with ADAS and robotics gross margins also showing significant improvements [1][2] Product Delivery and Market Expansion - In Q3, the company shipped 150,100 units of ADAS laser radar, a year-on-year increase of 14.32%, and 35,500 units in robotics and other fields, up 393%. In October, the monthly delivery of laser radars exceeded 120,000 units, marking the entry of digital new products into large-scale delivery. The company has secured over 1 million units in orders from overseas and joint venture automakers, covering key regions such as Japan, Europe, and North America [2][3] Technological Advancements - The company has developed self-researched SPAD-SOC and other digital chips that meet AEC-Q automotive standards, catering to various scenarios including Robotaxi, ADAS, and service robots. It has secured model designations from approximately 32 automakers and tier-one suppliers, with 23 models from overseas and joint ventures. Collaborations with major Robotaxi and Robotruck companies have been established, with a new standard solution for Robotaxi featuring up to 10 laser radars per vehicle [3] Future Projections - Revenue projections for 2025 and 2026 are estimated at 2.219 billion yuan and 3.289 billion yuan, representing year-on-year growth of 35% and 48%, respectively. The net profit attributable to the parent company is expected to be -148 million yuan in 2025 and 148 million yuan in 2026, with corresponding net profit margins of -6.7% and 4.5% [4]

Core Insights - The report highlights the importance of identifying investment opportunities in emerging technologies such as AI, quantum technology, and renewable energy, which are expected to drive market growth in the coming years [7] - It emphasizes the potential for structural recovery in manufacturing and resource sectors due to policy support and demand-supply optimization [7] - The report suggests that the A-share market is currently in a relatively reasonable valuation range, with earnings expected to take over from valuation as a key driver by 2026 [7] Domestic Financial Market - The Shanghai Composite Index closed at 3875.26, up by 0.29%, while the Shenzhen Component Index fell by 0.25% to 12875.19 [2] - The ChiNext Index decreased by 0.44%, indicating a mixed performance across major indices [2] Macro News Summary - The National Development and Reform Commission held a meeting to address issues related to price competition and cost recognition [4] - The Ministry of Industry and Information Technology is promoting supply-side adjustments to maximize consumer potential [4] - The National Bureau of Statistics is focused on expanding domestic demand and optimizing structure to enhance industrial economic quality and new momentum [4] Industry Developments - Huawei launched its first conversational robot, indicating potential growth in the AI toy market, with related stocks such as Tom Cat and Guanghe Tong [5] - OpenAI anticipates reaching 220 million paid users within five years, suggesting significant growth in AI applications, with related stocks including Hongsoft Technology and Focus Technology [5] - Hesai Technology has delivered over 2 million laser radars, marking a golden period for the industry with both volume and price increases, related stocks include Guangpu Co. and Crystal Optoelectronics [5] Company Focus - Longping High-Tech is collaborating with Beijing Academy of Agriculture and Forestry Sciences on the cultivation and industrialization of dwarf resistant corn varieties [6] - Aikang Co. is strategically acquiring Dongguan Silicon Xiang to strengthen its new energy supply chain [6] - Kaishan Co. plans to establish a joint venture to advance geothermal power project construction and operation in Hungary [6] - Yinxin Technology offers a variety of 3D printing materials, including consumer-grade PLA and modified PETG [6] Market Review and Outlook - On November 27, the market experienced a pullback after an initial rise, with the A-share market benefiting from upward liquidity trends [7] - The report notes that over 2700 stocks rose, with significant gains in lithium battery concepts and consumer sectors [7] - The report recommends focusing on two main lines: emerging technologies and the recovery of manufacturing and resource sectors, alongside two auxiliary lines related to consumer sector opportunities and international expansion [7]

Core Viewpoint - Hesai Technology has launched a new version of its lidar product, the ATX, featuring advanced specifications and a focus on enhancing safety in autonomous driving applications [1][21]. Group 1: Product Features and Innovations - The ATX new version incorporates SPAD technology, has 256 laser lines, a best angular resolution of 0.08 degrees by 0.05 degrees, and a range capability of 230 meters, with over 4 million units already ordered [1][21]. - The product utilizes Hesai's self-developed intelligent main control chip, the Fermi C500, which enhances performance without significantly increasing costs [1][27]. - The ATX new version aims to achieve "zero false positives" in safety, improving the reliability of autonomous driving systems [1][21][19]. Group 2: Market Position and Historical Context - In 2017, Hesai held only an 8% market share in the lidar sector, while Velodyne dominated with 90%. By 2022, Hesai became the market leader with a 74% share in the autonomous driving lidar field [7]. - The company initially focused on mechanical rotating lidar, which has since become a significant revenue source, despite early skepticism about its viability [7][8]. Group 3: Future Product Plans - Hesai plans to launch at least three new lidar products in 2024, including the ETX and FTX, which will further enhance performance and safety [29][31]. - The company has already produced the SPAD digital lidar FT120, which was first used in the Extreme Stone vehicle, and is set to expand its product offerings [15][21]. Group 4: Industry Insights and Competitive Landscape - The lidar market is evolving towards a digital and chip-based technology route, with a focus on enhancing performance and reducing costs [10][40]. - Hesai's CEO acknowledges the influence of major players like Huawei in promoting lidar technology, which has helped raise consumer awareness and acceptance [36][37]. Group 5: Strategic Vision and Market Expansion - The company emphasizes the importance of maintaining a robust supply chain with multiple suppliers to ensure safety and performance in its products [33][34]. - Hesai is exploring opportunities beyond the automotive sector, recognizing the potential for lidar applications in various industries [59][60].

Core Viewpoint - The laser radar industry is expected to see a convergence of explicit indicators, but the number of players will decrease as safety and reliability become the primary focus [1][3][6]. Group 1: Industry Trends - The explicit indicators of laser radar products will converge, making them appear similar, akin to safety components like airbags [3][6]. - The industry is moving towards a more orderly state, which is essential for reasonable profit distribution [12][14]. - The average selling price (ASP) of laser radars has dropped significantly from tens of thousands of dollars to under $200, a decrease of 99.5%, yet the gross margin has remained stable due to innovative cost management [9][10]. Group 2: Company Strategy - The company focuses on bottom-layer technology and aims to produce standardized products for mass consumption rather than entering the automotive or robotics markets directly [3][21]. - The company has maintained stable gross margins by innovating and vertically integrating its supply chain, rather than relying on cost-cutting measures [9][10]. - The company is exploring overseas markets and non-automotive sectors to mitigate intense price competition in the Chinese automotive market [10][11]. Group 3: Safety and Reliability - Safety is a critical concern, and new players in the market may struggle to meet the high safety standards required for laser radar products [4][6]. - The future of robotics will likely involve integrating multiple small, high-frame-rate laser radars to ensure safety in human-robot interactions [19][20]. - The focus on safety will become increasingly important as robots become more prevalent in households, necessitating advanced safety measures [19][20]. Group 4: Market Outlook - The automotive market is expected to remain significantly larger than the robotics market in the coming years, as cars are essential consumer goods while robots are not yet widely adopted [23][24]. - The industry anticipates a period of reflection regarding the functionality and commercial value of robots, rather than merely their human-like appearance [25].