Why Hesai Group (HSAI) Is Up After Profit Rebound and Hong Kong Listing Plans

• Hesai Group recently reported second-quarter 2025 earnings, marking a shift from a net loss to CNY 44.09 million net income and revenue of CNY 706.39 million, alongside announcing participation at IAA Mobility 2025 and unveiling its new ultra-long-range ETX lidar for autonomous vehicles.
• The company’s plans for a significant Hong Kong listing and its return to profitability highlight both its ambition for capital expansion and operational momentum in the lidar sector.
• We’ll explore how Hesai’s return to profitability in the past quarter directly impacts the company’s global growth investment narrative.

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Hesai Group Investment Narrative Recap

Owning shares in Hesai Group means believing in the future of lidar technology not just in China, but globally. The company’s swing to profitability last quarter, paired with its upcoming Hong Kong listing, heightens attention on capital raising as a catalyst, but also revives concerns about maintaining profit margins amid ambitious expansion; so far, these news events do not materially reduce the risk tied to margin pressures from competitive pricing or global scale-up.

The spotlight this quarter is on Hesai’s announcement that it will debut its ETX ultra-long-range lidar at IAA Mobility 2025. This product launch directly links to near-term revenue opportunities in automotive lidar, and likely plays into the company’s aim for more international exposure and design wins, both factors that can influence its growth momentum as it branches further into overseas markets.

By contrast, investors should remain mindful of how margin pressures may develop as the company seeks...

Read the full narrative on Hesai Group (it's free!)

Hesai Group's narrative projects CN¥6.7 billion revenue and CN¥1.1 billion earnings by 2028. This requires 44.0% yearly revenue growth and a CN¥1.113 billion earnings increase from the current CN¥-13.0 million.

Uncover how Hesai Group's forecasts yield a $27.45 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Fourteen fair value estimates from the Simply Wall St Community place Hesai Group between US$3.53 and US$54.48 per share. Strong recent earnings growth serves as a catalyst, yet this wide range shows just how differently you might view the company’s long-term potential, see how your outlook compares.

Explore 14 other fair value estimates on Hesai Group - why the stock might be worth over 2x more than the current price!

Build Your Own Hesai Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Hesai Group research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Hesai Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hesai Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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