We initiate coverage of Hesai, a leading provider of light detection and ranging, or lidar, sensors and spatial intelligence solutions for advanced driver assistance systems and robotics.
Hesai has maintained a leading position in China's long-range ADAS lidar market, enabling scale advantages, improving profitability, and strong cash generation.
Bears
Operating in a highly competitive and rapidly evolving market, Hesai incurs substantial research and development costs to innovate and maintain its competitive position.
Founded in 2014, Hesai Group develops, manufactures, and sells three-dimensional light detection and ranging, or lidar, solutions. Its products serve a wide range of applications, especially in the advanced driver assistance systems and robotics markets. Most of Hesai’s revenue comes from product sales (98% in 2025), primarily lidar solutions for ADAS and robotics applications. Service revenue (2%) is generated from engineering design, development, validation, and extended warranty services related to its lidar products. Mainland China is the company's largest market, accounting for 78% of total revenue, followed by North America (15%), Europe (5%), and other regions.