CICC initiates coverage of HESAI-W (02525) with an "outperform" rating and a target price of HK$182.5.

Zhongjin released a research report stating that it has initiated coverage on HESAI-W (02525) with an outperform industry rating and a target price of HK$182.50, based on the P/S valuation method, corresponding to 6.0x 2026e P/S. The firm believes that the company's comprehensive product matrix, domestic and international customer reserves, and cost reduction capabilities will safeguard its profit margin level. The firm forecasts the company's EPS for 2025 and 2026 to be 2.33 and 3.81 yuan respectively, with revenue of 3.1 billion and 4.3 billion yuan, and a 2024-2026 CAGR of 43%. Key points from Zhongjin: 1. The global leading provider of LiDAR solutions, achieving profitability first. 2. Three major competitive advantages build competitive edge. 3. Multiple factors driving industry into high growth period. Valuation: The current Hesai H shares correspond to 5.4/4.0 times the 2025/2026 P/S, while the US shares correspond to 5.5/4.0 times the 2025/2026 P/S. The firm adopts P/S valuation, giving the company H shares / US shares 6.0x 2026e P/S, with target prices of HK$182.5 / $23.5 respectively, representing 53% / 52% upside potential over current H shares / US shares prices, corresponding to Non-GAAP 35x 2026e P/E. Potential catalyst: Gradual realization of overseas orders, Siasun Robot & Automation LiDAR entering a volume stage.