Apollo Go has commenced 100% fully driverless operations across multiple cities in China and continues to expand. Apollo Go has achieved over 150 million kilometers of safe driving and provided more than 10 million rides to the public. SOURCE Hesai Technology "This historic deployment underscores Hesai's pivotal role in driving the global expansion of autonomous mobility, coming at a moment when L4 autonomous driving is turning into a commercial reality," said Hesai CEO and Co-Founder David Li. "Our lidar s ...

Core Insights - Hesai Technology has secured an exclusive series production partnership with Chery Automobile's new energy brand, iCAR, to integrate its ATX Lidar in new vehicles, with mass production set to begin in Q4 2025 [1][2] Company Developments - The ATX Lidar is a compact, ultra-high-definition, long-range sensor that will enhance the perception capabilities of iCAR vehicles in complex scenarios such as active braking, adaptive cruise control, urban navigation, and smart parking [2] - Hesai has achieved design wins with 22 automotive OEMs for over 120 vehicle models globally, and in December 2024, it became the first lidar company to deliver more than 100,000 units in a single month [3] Industry Context - The partnership aligns with Chery's intelligent mobility strategy aimed at establishing leadership in smart mobility ecosystems [2][3]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Hesai Group due to allegations of materially misleading business information issued by the company [1] Group 1: Legal Actions and Investigations - Investors who purchased Hesai securities may be entitled to compensation through a class action lawsuit without any out-of-pocket fees, as the Rosen Law Firm prepares to seek recovery of investor losses [2] - Blue Orca Capital published a report claiming that Hesai is a "Nasdaq-listed Chinese scam" and provided evidence of its alleged connections to the Chinese military, leading to a 7.8% drop in Hesai's stock price on March 18, 2025 [3] Group 2: Rosen Law Firm's Credentials - The Rosen Law Firm has a strong track record in securities class actions, having achieved the largest settlement against a Chinese company at the time and being ranked No. 1 for the number of securities class action settlements in 2017 [4] - The firm has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone, and has consistently been recognized for its success in this field [4]

Core Viewpoint - The electric vehicle (EV) sector may be more suitable for long-term traders, especially amid ongoing tariff tensions between the U.S. and China, which are impacting various market sectors [1]. Group 1: U.S.-China Trade Tensions - Technology has been a contentious issue between the U.S. and China since the Cold War, with recent tariff threats exacerbating the situation [2]. - The U.S. government's blacklisting actions have contributed to the struggles of Chinese tech companies, including Hesai Group [3]. Group 2: Hesai Group Overview - Hesai Group (NASDAQ:HSAI), a lidar systems manufacturer, has a market cap of $2.45 billion and has seen a 12-month gain of 260% [3]. - The prices for lidar sensors have significantly decreased, with the product now present in approximately 74% of global robotaxis [4]. Group 3: Financial Performance and Market Sentiment - Hesai Group's stock experienced a 50.4% increase following its earnings report, despite a revenue miss, driven by a 28.3% revenue boost and a partnership with Mercedes-Benz [5]. - Short interest in Hesai Group has surged by 400% over the past two reporting periods, indicating a potential for a short squeeze [6]. Group 4: Investment Opportunities - The current geopolitical tensions have led some investors to consider overseas equities, with China-based companies like Hesai Group presenting attractive valuations [7].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported Q4 2024 revenue of 720 million yuan, a year-on-year increase of 28% and a quarter-on-quarter increase of 33%. The Non-GAAP net profit was 170 million yuan, marking a turnaround from the previous quarter. The gross margin was 39.0%, down 2.2 percentage points year-on-year and 8.7 percentage points quarter-on-quarter. The guidance for 2025 revenue is set at 3 to 3.5 billion yuan, representing a year-on-year increase of 44% to 69%, with a gross margin target of 40% and Non-GAAP net profit expected to be between 350 million to 500 million yuan, a year-on-year increase of 2455% to 3550% [2] Summary by Sections ADAS (Advanced Driver Assistance Systems) - In Q4, the company shipped 193,000 ADAS laser radars, a year-on-year increase of 140%, with total shipments for the year reaching 456,000 units, up 134% year-on-year. The company achieved a milestone with a top European OEM for a project covering both new energy and fuel vehicles, expected to span from 2025 to 2030+. The ATX product is set for mass production in Q1 2025, with 11 OEMs already secured, contributing to the democratization of intelligent driving [3] General Robotics - The company saw a 294% year-on-year increase in shipments of lawn mowing robots in Q4, totaling 29,000 units, with annual shipments reaching 455,000 units, a 67% increase. The global market for lawn mowing robots is approximately 1.5 billion USD, with North America having a penetration rate of less than 5%. The company anticipates rapid growth in this segment, driven by technological advancements and the resolution of initial wiring challenges [4] Production Capacity and Financial Guidance - The company plans to launch two new production lines in Q1 2025, with production expected to start in Q3 2025, increasing total capacity to 2 million units by the end of 2025. The guidance for 2025 includes a shipment target of 200,000 units in Q1 and an annual total of 1.2 to 1.5 million units, including 200,000 units of general robotics and over 100,000 units of ATX. The revenue guidance for 2025 is set at 3 to 3.5 billion yuan, with a gross margin target of 40% and Non-GAAP net profit expected to be between 350 million to 500 million yuan, exceeding market expectations [5] Earnings Forecast and Valuation - The report adjusts the company's expected net profit for 2025 and 2026 from 10 million and 60 million USD to 30 million and 70 million USD, respectively, with a forecast of 120 million USD for 2027. The current market capitalization corresponds to P/E ratios of 72, 33, and 20 for the years 2025, 2026, and 2027, respectively, maintaining a "Buy" rating [5]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [1]. Core Insights - The company reported Q4 2024 revenue of 720 million yuan, a year-on-year increase of 28% and a quarter-on-quarter increase of 33%. The Non-GAAP net profit was 170 million yuan, marking a return to profitability compared to the previous quarter. The gross margin was 39.0%, down 2.2 percentage points year-on-year and 8.7 percentage points quarter-on-quarter. The guidance for 2025 projects revenue between 3 billion to 3.5 billion yuan, representing a year-on-year growth of 44% to 69%, with a gross margin target of 40% and Non-GAAP net profit expected to be between 350 million to 500 million yuan, a significant increase of 2455% to 3550% year-on-year [2]. Summary by Sections ADAS (Advanced Driver Assistance Systems) - In Q4, the company shipped 193,000 ADAS laser radars, a year-on-year increase of 140%, with total shipments for the year reaching 456,000 units, up 134% year-on-year. The company achieved a milestone with a major European OEM for a project covering both new energy and fuel vehicles, expected to span from 2025 to 2030+. The ATX product is set for mass production in Q1 2025, with 11 OEMs already secured, contributing to the democratization of intelligent driving [3]. General Robotics - The company saw a 294% year-on-year increase in shipments of lawn mowing robots in Q4, totaling 29,000 units, with annual shipments reaching 455,000 units, a 67% increase. The global market for lawn mowing robots is approximately 1.5 billion USD, with North America having a penetration rate of less than 5%. The company anticipates rapid growth in this segment, driven by technological advancements and the resolution of initial wiring challenges [4]. Production Capacity and Financial Guidance - Two new production lines are set to start in Q1 2025, with production expected to commence in Q3 2025, increasing total capacity to 2 million units by the end of 2025. The company projects shipments of 200,000 units in Q1 2025 and 1.2 to 1.5 million units for the entire year, including 200,000 units for general robotics and over 100,000 units for the ATX series. The financial guidance for 2025 indicates revenue growth of 44% to 69% and a Non-GAAP net profit increase of 2455% to 3550% year-on-year, exceeding market expectations [5]. Financial Projections - The report adjusts the company's expected net profit for 2025 and 2026 to 30 million and 70 million USD, respectively, with a forecast of 120 million USD for 2027. The current market capitalization corresponds to P/E ratios of 72, 33, and 20 for the years 2025, 2026, and 2027, respectively [5].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Hesai Group due to allegations of materially misleading business information [1] Group 1: Allegations and Market Reaction - Blue Orca Capital published a report claiming that Hesai Group is a "Nasdaq-listed Chinese scam" and accused the company of dishonestly denying its ties to the Chinese military, despite evidence showing its LiDar systems are used in military vehicles [3] - Following the report from Blue Orca Capital, Hesai's stock price fell by 7.8% on March 18, 2025 [3] Group 2: Legal Actions and Investor Rights - Investors who purchased Hesai securities may be entitled to compensation through a class action lawsuit being prepared by Rosen Law Firm, which operates on a contingency fee basis [2] - The Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a successful track record in securities class actions, highlighting its own achievements in recovering significant amounts for investors [4]

Core Viewpoint - Hesai Group strongly disagrees with the allegations made by Blue Orca Capital and believes the report lacks merit [1]. Company Overview - Hesai Technology is a global leader in lidar solutions, providing products for various applications including passenger and commercial vehicles, autonomous driving, and robotics [3]. - The company integrates in-house manufacturing with lidar R&D and design, allowing for rapid product iteration while maintaining high performance, quality, and affordability [3]. - Hesai has established offices in Shanghai, Palo Alto, and Stuttgart, serving customers in over 40 countries [3]. Commitment to Ethics - The company reiterates its commitment to stringent standards of business ethics and regulatory compliance [2].

Core Viewpoint - Edelson Lechtzin LLP is investigating potential violations of federal securities laws involving Hesai Group due to allegations of misleading business information provided to investors [1][3]. Company Overview - Hesai Group positions itself as a global leader in three-dimensional light detection and ranging (LiDAR) solutions [2]. Allegations of Wrongdoing - Blue Orca Capital has taken a short position in Hesai Group, labeling it as a "Nasdaq-listed Chinese scam" that is allegedly deceiving investors and U.S. authorities [3]. - Blue Orca claims to have evidence showing that Chinese military vehicles are equipped with Hesai's LiDAR systems, and asserts that Hesai's financial disclosures are misleading [4]. - The report indicates that Hesai has lost its largest customer and has laid off up to 30% of its workforce, contradicting its claims of achieving sustained profitability [4]. - Following the release of this information, Hesai Group's stock experienced a decline of 10% [4].

Core Viewpoint - Hesai Group is facing significant scrutiny and pressure on its stock following allegations from short seller Blue Orca Capital, which claims the company is misleading investors regarding its ties to the Chinese military and its financial disclosures [1][2]. Financial Concerns - Blue Orca Capital has accused Hesai of providing suspect financials and lying about its involvement with the Chinese military, deeming the company untrustworthy and uninvestable [2]. - The short seller highlighted that Hesai's profitability, reported late last year, may have been artificially inflated by a $20 million break-up fee from its largest customer, which was not disclosed to investors [6]. - Concerns were raised about inconsistent purchasing volumes relative to reported sales and unexplained margin expansion, alongside the withdrawal of the company's IPO in China [8]. Military Allegations - Allegations have been made that Hesai has misled both investors and U.S. authorities regarding the use of its lidar technology for military applications, with evidence presented showing a military vehicle equipped with Hesai's lidar system [3]. - The Department of Defense designated Hesai as a "Chinese military company" in January 2024, and the company is currently suing to be removed from this list, with expectations that it may lose the case [4]. Revenue Impact - Blue Orca estimates that Hesai could lose a customer segment that historically accounted for 40% of its revenues and approximately 57% of its gross profit due to its military designation [5]. - Following a recent surge in stock price due to a reported multi-year deal with Mercedes-Benz, skepticism remains regarding the exclusivity of this deal, as Mercedes has not publicly confirmed it [7]. Stock Performance - Hesai Group's stock has seen a nearly 300% increase over the past year, but it was down 8.5% to $20.39 at the time of the report's publication [9].