HESAI-W Opens 8.2% Lower; 1Q Swings to Profit of RMB18.315M; Citi Cuts TP

HESAI-W (02525.HK) -17.000 (-9.759%) Short selling $40.38M; Ratio 31.166% opened sharply lower by 8.15% this morning (20th) at HKD160, with 72,600 shares traded pre-market, involving HKD11.6201 million. Hesai Group (HSAI.US) tumbled 9% overnight in the US, closing at USD20.03.After market close yesterday (19th), the company announced its results for 1Q26 ended March. Revenue rose 29.6% YoY to RMB681 million. Gross margin narrowed 2.6 ppts YoY to 39.1%. The company swung to a profit of RMB18.315 million, with EPS of RMB0.12. Under non-GAAP measures, quarterly net profit increased 4.53x YoY to RMB47.748 million, with non-GAAP EPS of RMB0.31.The company expects its strategic growth initiative (SGI) to start contributing revenue from 2Q26 and anticipates contributing approximately RMB100 million in net revenue in 2026. Looking ahead, driven by continued expansion of its lidar business and volume ramp-up of SGI, the company expects its 2026 financial performance to strengthen sequentially.Citi said in a report that Hesais core operating profit for 1Q far exceeded expectations. Revenue for 1Q increased 30% YoY to RMB681 million, 3% above market consensus. Core net profit for 1Q also beat forecasts significantly. Adding back foreign exchange losses of RMB24 million and SGI operating losses of RMB51 million, core operating profit for 1Q would have reached RMB66 million. However, blended average selling price declined 9% QoQ in 1Q, below expectations. As electric vehicle industry shipments in 2Q may be weaker than expected, the broker revised its revenue and net profit forecasts to more conservative levels and cut its TP from HKD257.5 to HKD223.3, while maintaining a Buy rating. (da/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-19 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)