Summary of Hesai Group Conference Call Company Overview - **Company**: Hesai Group - **Industry**: China Autos & Shared Mobility - **Ticker**: HSAI.O Key Financial Results - **4Q24 Performance**: - First-time GAAP net profit of Rmb147 million compared to a net loss of Rmb70 million in 3Q24 [2] - Revenue of Rmb720 million, a 33% increase quarter-over-quarter, aligning with guidance of approximately US$100 million [2] - Total LiDAR shipments reached 222,000 units, up 65% quarter-over-quarter [2] - Gross margin decreased by 8.7 percentage points to 39% due to lower high-margin NRE services revenue [2] - Operating expenses were contained at 55.2% of total sales, down from 63.6% in 3Q24 [2] - Full-year non-GAAP net profit for 2024 was Rmb14 million [2] 2025 Outlook - **Revenue Forecast**: Expected net revenues of Rmb3-3.5 billion, representing a year-over-year increase of 44-69% [3] - **Net Income Projection**: Anticipated net income of Rmb200-350 million under GAAP and Rmb350-500 million under non-GAAP [3] - **Seasonal Expectations**: For the first quarter, net revenues are projected to be Rmb520-540 million, a 45-50% year-over-year increase, with total shipments around 200,000 units [3] - **Breakeven Point**: Expected to occur between Q1 and Q2 of 2025 [3] - **Client Mix**: Key customers include Li Auto, Xiaomi, Great Wall Motor, Leapmotor, and BYD, with a multi-year program with a European OEM expected to start by year-end [3] Gross Margin and Product Mix - **Gross Margin Confidence**: Management is optimistic about maintaining a gross margin of around 40% in 2025 despite lower average selling prices (ASP) for ATX and AT128 products [4] - **Product Mix Impact**: The ATX series is expected to dominate shipments, while robotics LiDAR products are anticipated to provide reasonable gross margins to offset the impact of a less favorable product mix [4] - **Long-term Value**: Management believes the content value per vehicle will remain between US$500 to US$1,000 with the introduction of Level 3 automation [4] Expansion into Robotics - **New Market Entry**: Hesai is expanding into the robotics market, forecasting shipments of 200,000 units of robotics LiDARs in 2025 [9] - **Partnerships**: Collaborations include a leading smart home robotics company for lawn mowers and orders from Agtonomy for autonomous agriculture vehicles [9] - **Technological Applications**: The XT series LiDAR is being utilized for advanced 3D vision in robotics and automating in-plant driving systems at BMW factories [9] Market Position and Valuation - **Current Stock Rating**: Equal-weight with a price target of US$15.00, indicating a potential downside of 6% from the current price of US$16.01 [6] - **Market Capitalization**: Approximately Rmb14.5 billion [6] - **52-Week Price Range**: US$20.18 to US$3.52 [6] Risks and Considerations - **Upside Risks**: Potential market share gains, faster adoption of LiDARs by traditional OEMs, and sustainable pricing power [13] - **Downside Risks**: Slower adoption of LiDARs, ASP declines due to cost-cutting by OEMs, and threats from emerging technologies [13] This summary encapsulates the key points from the conference call, highlighting Hesai Group's financial performance, future outlook, market expansion, and associated risks.

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V i e w p o i n t | 11 Mar 2025 02:50:00 ET │ 13 pages Commodities Dashboard Curve Structure, Volatility, Momentum and Positioning data – Mar 10 update CITI'S TAKE This is our new Commodities Dashboard which replaces our legacy Commodities Flows Chartpack and Commodities Volatility Dashboard and provides the latest curve structure, volatility, momentum and positioning data across major commodity markets. Our Backwardation Dashboard (see Figure 1) shows HH natgas and ICE coffee as the most backwardated commo ...

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