Pony AI has selected Hesai's (HSAI, Financial) advanced AT128 lidar technology as the key sensing component for its latest Robotaxi offerings. The seventh-generation Robotaxi models will each integrate four units of this efficient, automotive-grade lidar system.
Introduced at the Shanghai International Automobile Industry Exhibition, Pony AI's updated autonomous driving platform represents its latest advancements in L4 autonomy. This cutting-edge system will be featured across three new Robotaxi models, all currently in the phase of road-testing in various locations.
The collaboration highlights a significant step for Hesai, reinforcing its position in the autonomous vehicle industry by providing crucial technology that underpins Pony AI's innovative hardware and software solutions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Hesai Group (HSAI, Financial) is $23.42 with a high estimate of $36.12 and a low estimate of $15.05. The average target implies an upside of 62.75% from the current price of $14.39. More detailed estimate data can be found on the Hesai Group (HSAI) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, Hesai Group's (HSAI, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
HSAI Key Business Developments
Release Date: March 11, 2025
- Net Revenue (Full Year 2024): RMB 2 billion (USD 285 million).
- Lidar Shipments (Full Year 2024): Over 500,000 units.
- Gross Margin (Q4 2024): 39%.
- Non-GAAP Net Profit (Full Year 2024): RMB 14 million (USD 1.9 million).
- Operating Cash Flow (Full Year 2024): RMB 63 million (USD 8.6 million).
- Operating Cash Flow (Q4 2024): RMB 641 million (USD 88 million).
- Projected Revenue (Full Year 2025): RMB 3 billion to RMB 3.5 billion (USD 411 million to USD 480 million).
- Projected Lidar Shipments (Full Year 2025): 1.2 to 1.5 million units.
- Projected Net Revenue (Q1 2025): RMB 520 million to RMB 540 million (USD 71 million to USD 74 million).
- Projected GAAP Profitability (Full Year 2025): RMB 200 million to RMB 350 million.
- Projected Non-GAAP Profitability (Full Year 2025): RMB 350 million to RMB 500 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Hesai Group (HSAI, Financial) achieved record high Lidar shipments and net revenue in 2024, with over 500,000 units shipped.
- The company became the first Lidar company to achieve full-year, non-GAAP net profit, demonstrating strong financial leadership.
- Hesai Group (HSAI) projects significant growth in 2025, with expected Lidar shipments between 1.2 million to 1.5 million units.
- The company has secured design wins with 11 OEMs for its ATX Lidar, indicating strong market acceptance.
- Hesai Group (HSAI) is expanding its presence in the Robotics market, with significant orders for its JT Mini Lidar.
Negative Points
- Blended gross margin decreased in Q4 2024 due to a shift in product mix towards ADAS shipments.
- The company faces potential ASP erosion in the ADAS market, which could impact profitability.
- There is a risk of key OEM customers seeking additional Lidar suppliers, which could affect market share.
- The electrification pace in European markets is slower than expected, potentially impacting Lidar adoption.
- Hesai Group (HSAI) needs to manage CapEx effectively to meet increasing demand and expand production capacity.
