Company Coverage
Hesai Group (2525 HK): 2Q26: Miss On ASP And Other Incomes; 3Q26 Revenue To Accelerate; 2026 Shipment Target Kept With SGI Revenue Lifted
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$18.34
HK$29.00
+58.1%
HK$33.00
Analyst
Highlights
2Q26 results miss estimates with net profit of Rmb70.6m (+60% yoy/+285% qoq) and adjusted net profit of Rmb101m (+38% yoy/+112% qoq) on lower than-expected ASP and other incomes.
Blended ASP fell 10% qoq to Rmb1,294 in 2Q26, but gross margin recovered 1.0ppt qoq to 40.1%. Other income plunged over 80% in 2Q26. We cut our 2026-28 net profit forecasts by 27%/17%/12% respectively to Rmb400m/Rmb758m/Rmb1,200m on lower ASP and other income.
Hesai guides for Rmb1.1b-1.15b in 3Q26 revenue (up 38-45% yoy, vs +21% yoy in 2Q26), and keeps 2026 shipment target at 3.0m-3.5m and gross margin guidance at 40%. Meanwhile, it raises 2026 SGI revenue target from Rmb100m to Rmb200m-300m and targets US$100m in SGI revenue in 2027.
Maintain BUY and cut target price from HK$33.00 to HK$29.00.
Analysis
2Q26 earnings miss on ASP and other income. Hesai Group’s (Hesai) 2Q26 results missed expectations with net profit of Rmb71m (+60.0% yoy/+285.2% qoq), vs our estimate of Rmb117m and consensus estimate of Rmb126m, and adjusted net profit of Rmb101m (+38.3% yoy/+112.3% qoq), vs our estimate of Rmb147m and consensus estimate of Rmb158m. This takes 1H26 net profit and adjusted net profit to Rmb88.9m (16% of our full year estimate) and Rmb149m (27% of our full-year estimate). The earnings miss stemmed from ASP and other income.
Highlights
2Q26 results miss estimates with net profit of Rmb70.6m (+60% yoy/+285% qoq) and adjusted net profit of Rmb101m (+38% yoy/+112% qoq) on lower than-expected ASP and other incomes.
Blended ASP fell 10% qoq to Rmb1,294 in 2Q26, but gross margin recovered 1.0ppt qoq to 40.1%. Other income plunged over 80% in 2Q26. We cut our 2026-28 net profit forecasts by 27%/17%/12% respectively to Rmb400m/Rmb758m/Rmb1,200m on lower ASP and other income.
Hesai guides for Rmb1.1b-1.15b in 3Q26 revenue (up 38-45% yoy, vs +21% yoy in 2Q26), and keeps 2026 shipment target at 3.0m-3.5m and gross margin guidance at 40%. Meanwhile, it raises 2026 SGI revenue target from Rmb100m to Rmb200m-300m and targets US$100m in SGI revenue in 2027.
Maintain BUY and cut target price from HK$33.00 to HK$29.00.
Analysis
2Q26 earnings miss on ASP and other income. Hesai Group’s (Hesai) 2Q26 results missed expectations with net profit of Rmb71m (+60.0% yoy/+285.2% qoq), vs our estimate of Rmb117m and consensus estimate of Rmb126m, and adjusted net profit of Rmb101m (+38.3% yoy/+112.3% qoq), vs our estimate of Rmb147m and consensus estimate of Rmb158m. This takes 1H26 net profit and adjusted net profit to Rmb88.9m (16% of our full year estimate) and Rmb149m (27% of our full-year estimate). The earnings miss stemmed from ASP and other income.
BUY (Maintained)
Current price:
Target price:
Upside:
Previous TP :
HK$18.34
HK$29.00
+58.1%
HK$33.00
Analyst
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