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.
Hesai Group is engaged in the development, manufacture, and sales of three-dimensional light detection and ranging solutions, or LiDAR. Its LiDAR products enable a broad spectrum of applications across passenger or commercial vehicles with enhanced driver assistance systems, or ADAS, autonomous vehicle fleets providing passenger and freight mobility services, or Autonomous Mobility, and other applications such as last-mile delivery robots, street sweeping robots, and logistics robots in restricted areas, or Robotics. Geographically, the company operates in North America, Mainland China, Europe, and Other regions.