Movement Alert|HESAI-W Falls 6.43% in Regular Trading, Q3 Revenue Guidance Below Market Expectations

Market Focus
Aug 19

On August 19, HESAI-W fell 6.43% in regular trading, trading at 17.28 HKD/share, with turnover of 14.39 million HKD. The decline followed the company's Q2 earnings release on the prior trading day, with Q3 revenue guidance missing consensus estimates and a sharp drop in operating profit weighing on sentiment.

Hesai guided Q3 revenue at 1.10 billion to 1.15 billion RMB, representing 38%-45% year-over-year growth, but falling short of the FactSet consensus estimate of 1.17 billion RMB. Q2 revenue came in at 861 million RMB, up 21.9% YoY, with net profit rising 60% to 70.6 million RMB, marking five consecutive quarters of GAAP profitability. However, operating profit collapsed 90.4% YoY to just 2.195 million RMB, as the strategic growth initiative (SGI) segment posted a 64.04 million RMB operating loss that nearly offset the lidar business's 66.24 million RMB operating profit. Gross margin contracted from 42.5% to 40.1%.

The company's US-listed shares had already declined over 12% intraday in the prior session. While Hesai's SGI business — including robotics power modules and the Kosmo spatial intelligence platform — generated revenue for the first time and the company raised its SGI revenue guidance to 200-300 million RMB, the near-term margin dilution from scaling new businesses has pressured investor sentiment.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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