Summary of Hesai Group Earnings Conference Call Company Overview - **Company**: Hesai Group (HSAI/2525.HK) - **Industry**: LiDAR solutions provider, focusing on advanced driver assistance systems (ADAS), autonomous mobility, and robotics Key Financial Highlights - **3Q25 Performance**: - Revenue: RMB 795 million, a decrease of 4% YoY but an increase of 41% QoQ [10] - Net income (GAAP): RMB 256 million, a significant increase of 327% YoY [10] - Non-GAAP EPS: RMB 2.01, up 232% YoY [10] - Gross margin: 42.1%, improved by 1.4 percentage points YoY [10] Revenue and Volume Growth Projections - **2026 Estimates**: - Revenue growth forecast lowered to 43% from 52% due to ASP decline [3] - Volume growth projected at 90%, with net income growth expected to reach 80% [2] - LiDAR volume estimate remains at the high-end of management guidance (2-3 million units) for 2026E [1] Market Position and Competitive Landscape - **Market Share**: - Hesai holds a 32.8% market share in the ADAS LiDAR segment as of 8M25, up from 28.4% in 1H25 [11] - Expected contributions from major OEMs: Xiaomi (29%), Leapmotor (26%), Li Auto (21%), BYD (12%) for 2026E [3] - **ASP Trends**: - Forecasted 10% YoY decline in ASP for main ATX product, now projected at US$160 for 2025 [3] - Overall pricing pressure due to rising competition [1] Strategic Developments - **Design Wins**: - Secured design wins with top ADAS customers, achieving 100% LiDAR adoption across their 2026 models [11] - Expansion into new OEMs like Geely and Chery, with expected market shares of 35% and 15% respectively [3] - **Robotics Segment**: - Robotics LiDAR shipments reached 61k units in 3Q25, a 1312% increase YoY [14] - Exclusive supplier agreements with major players in the robotaxi market [14] Future Outlook - **Adoption of L3 Technology**: - Anticipated turning point in LiDAR adoption in 2026, with potential for 2-3 units per vehicle and up to 6 units for L3 vehicles [12] - Higher price tolerance expected from L3 customers due to increased utilization [12] - **Financial Position**: - Raised US$614 million from dual-primary listing in Hong Kong, enhancing financial capacity for product development [14] Risks and Considerations - **Key Risks**: - Slower LiDAR adoption, intensified competition, customer pricing pressure, and policy risks [15][16] - **Valuation**: - Current trading at 23x 2026E P/E, with a target price of US$34/HK$265, implying significant upside potential [4][13] Conclusion - **Investment Rating**: - Goldman Sachs maintains a Buy rating on Hesai Group, citing strong growth potential in the LiDAR market and robust financial performance [14][15]