[Zhenzhuo Institutional View] Hesai Technology (02525.HK) reports strong Q3 turnaround with surging LiDAR shipments

Hesai Technology (02525.HK) $HESAI-W(02525.HK) reported strong Q3 2025 results, with net revenue reaching RMB 795 million, up 47.5% year-on-year. Quarterly net profit was RMB 256 million, a significant turnaround from the net loss in the same period last year. The performance exceeded market expectations, partly due to a RMB 173 million gain from the sale of an equity investment. Gross margin remained robust at 42.1% for the quarter.

Operationally, total LiDAR shipments in Q3 reached 441,398 units, up 228.9% YoY, including 380,759 ADAS LiDAR units. Operating expenses decreased by 23% YoY thanks to cost control. Based on the strong performance, the company raised its full-year 2025 net profit guidance to RMB 350-450 million and expects Q4 net revenue between RMB 1-1.2 billion.

In business development, the company secured full-vehicle model design wins from its top two ADAS customers for 2026. In robotics, it signed new supply agreements with global autonomous driving companies including Motional, Pony.ai and JD Logistics. Looking ahead, L3 vehicle deployment is seen as a key growth driver, with each L3 vehicle expected to carry 3-6 LiDAR units. The company forecasts total shipments will reach at least 2-3 million units by 2026.

Source: KGI Securities